As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have seen my fair share of ups and downs, bull runs, and bear markets. The latest surge in Ethereum price has piqued my interest, primarily due to the influence of its co-founder, Vitalik Buterin.
On Wednesday, the price of Ethereum saw a swift rise, primarily due to an optimistic statement from its co-founder, Vitalik Buterin. This digital currency climbed by 1.1%, but it’s worth noting that it also dropped by 2% over the last week. Other cryptocurrencies such as Bitcoin, Cardano, and TRON showed minor increases as well, hinting at a potential strengthening bullish trend in the near future.
Ethereum Price Market Movers: Vitalik Buterin Bull Post, IOMAP Support, Declining Network Growth
During Tuesday’s US trading session, the Ethereum price surged beyond the $2,600 barrier, possibly inspired by a post from Vitalik Buterin on the X platform. The post depicted a bull carrying a sign that read “Ethereum is good.” In response to requests for more direct Ethereum-related updates, Buterin stated he would focus less on philosophical discussions and more on promoting Ethereum price growth. This post seemed to trigger an immediate increase in ETH‘s value, suggesting a potential prolonged uptrend towards $3,000 this week under favorable conditions.
Instead of spending too much time on philosophical discussions, it’s suggested I focus more on creating posts that are optimistic about Ethereum. Here’s a positive take on Ethereum, crafted using the stable diffusion 3 inpainting technique and further refined with GIMP.
— vitalik.eth (@VitalikButerin) August 21, 2024
As bulls accumulate resources for a potential turnaround, IntoTheBlock’s IOMAP model highlights a strong support level spanning from $2,292 to $2,373. Over 1.69 million investors have previously bought about 50.52 million ETH in this range, suggesting a bullish outlook for Ethereum and anticipation of higher returns, especially as selling pressure decreases near the $3,000 mark.
As a researcher examining the data from Santiment, I’ve noticed that the network growth seems to be declining, with only 88,800 new addresses joining the protocol on August 20th, compared to 196,720 on May 5th. This consistent decrease in the network growth metric raises concerns about a potential slowdown in the ETH price forecast and potentially an extended correction to the fundamental average support of $2,326.
ETH Price Analysis: Bulls Make A Comeback
The upward surge in Ethereum’s price is aiming for reinforcement at around $2,600. If the daily closing price manages to exceed this point, it could attract more investors to buy ETH, anticipating another recovery phase. Initially, this may push the price towards $2,800, and subsequently, towards $3,000.
Traders should look for the Moving Average Convergence Divergence (MACD) to trigger a buy signal and cross above the neutral zone so they can confirm an upward trend. Keeping an eye on other crucial levels like the current 20-day Exponential Moving Average (EMA) and the potential resistance of the 50-day EMA will help prevent falling into bull traps, a pattern that has been prevalent in August.
In the upcoming days, the path Ethereum’s price takes will be influenced by two significant zones: The support level around $2,800 and the resistance area above $2,500. If we see a breach on either side of this range, it could lead to a surge past $3,000 (in case of an upward breakout) or a fall towards $2,326 (in case of a downward breakout). At present, the crucial $2,600 mark is vital for renewed bullish momentum.
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2024-08-21 20:37