As a seasoned analyst with years of experience navigating the volatile cryptocurrency market, I find myself intrigued by the recent developments surrounding Ethereum (ETH). The 1.26% uptick to $2654 during the Friday trading session is a promising sign, especially in light of Bitcoin’s recovery above $60000 and the ensuing relief rally in the altcoin market.
During Friday’s trading, Ethereum experienced a modest increase of 1.26%, reaching $2654. This uptick comes after a mid-week sell-off and has helped Bitcoin regain its position above $60000. This recovery has in turn sparked a new wave of optimism in the altcoin market. The increasing Ethereum price is approaching a significant resistance level at $2750, a crucial zone that could further boost its recovery and continue the ongoing correction.
Ethereum Price Holds Key Support Amid Major ETH Transfer to Exchange
As per information from Arkham Intelligence’s blockchain analysis, an account linked to Metalpha (Gnosis Safe Proxy address) has moved approximately 10,000 ETH, equivalent to around $26.02 million, to Binance.
During the trading period, the value of Ethereum remained stable around $2600, meanwhile, its total market capitalization was approximately $315.5 billion.
Metalpha, a significant player in cryptocurrency asset management connected with Bitmain – the leading Bitcoin mining firm – had previously requested Lido to cash out 10,000 ETH. This action emphasizes Metalpha’s active involvement in managing substantial digital assets, which might be a prelude to strategic financial moves within the market.
ETH Price Teeters at Pivot Point
Over the last fortnight, the cryptocurrency market has seen a rebound following the steep decline in July. This positive shift boosted the value of Ethereum from $2111 to $2620, representing a 24% increase.
In simpler terms, the increasing cost could potentially interrupt the declining pattern that was previously reinforced at $2750, serving as a strong foundation during market stabilization. From March to early August, the Ethereum price forecast demonstrated a period of stagnation, moving horizontally within two trendlines forming rectangle patterns.
As a researcher observing market trends, I’ve noticed a significant lateral increase that suggests we’re entering the distribution phase – a time in the market cycle when larger investors start to offload their holdings, often passing them on to retail traders.
In simpler terms, if the price of ETH returns to around $2750-$2775, it might increase selling pressure and potentially extend the market’s decline. The recent crossover between the 50-day and 200-day Exponential Moving Averages supports a bearish perspective.
Prediction indicates a drop of approximately 19%, bringing the asset value down to around $2127. A more significant decline might necessitate a re-evaluation of the $1900 support level.
Contrarily, Ethereum has rebounded to a level that’s typically seen as a healthy correction (61.8% Fibonacci retracement), allowing buyers to regain their bullish momentum. Furthermore, the ADX indicator, currently at 39%, indicates that sellers have been in control of an extended rally, potentially enticing dip buyers into the market.
Consequently, if the price breaks through current resistance, it will establish firm support and undermine the bearish argument. Following this breakout, the asset might surge more than 20%, potentially reaching a price of $3400.
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2024-08-18 03:42