As a seasoned researcher with over a decade of experience in the crypto market, I’ve seen my fair share of ups and downs. The recent Ethereum price sustainability above $2000 has indeed sparked optimism, reminding me of the old adage, “Buy low, sell high.
As a crypto investor, I’ve found myself feeling more optimistic lately, given that Ethereum has managed to sustain its price above the significant psychological level of $2000. This stability is making me think there might be a forming bottom in the market. The decrease in selling pressure from smaller traders and the increasing accumulation by large holders are signs pointing towards a bullish outlook, suggesting a potential recovery may be on the horizon.
Ethereum Bottom in Sight? How to Position for Next Bull Run
Starting from mid-September, the crypto market began to show signs of a bullish trend due to anticipation that the U.S. Federal Reserve will reduce interest rates by 0.5% at their FOMC meeting on Wednesday. This would mark the first rate cut in four years and could have far-reaching effects beyond just the domestic market. Historically, such moves stimulate economic activity and increase investments in riskier assets like cryptocurrencies. Consequently, the prices of major digital currencies such as Bitcoin and Ethereum may be set for a potential price rise in response to this significant macroeconomic event.
Based on data from Santiment’s network analysis, a significant unloading of 31,702 Ethereum tokens took place on September 10th, often signaling the departure of less committed investors and decreasing market pressure on the asset. A similar trend was observed during the mass selling on August 5th, which ultimately led to the formation of a strong support level for ETH around $2200.
Furthermore, a significant portion of Ethereum’s supply is gradually accumulated by major holders, amounting to approximately 43.98%, indicating a high level of faith in the currency’s future price escalation.
ETH Price Eyes Major Reversal Amid Double Bottom Formation
On September 7th, the 4-hour Ethereum price chart indicates a quick flip from the support level at $2150, marking a second reversal in about five weeks. This recent reversal underscores strong buying interest, propelling the asset up by approximately 7.5%, now holding steady around $2300. As a result, Ethereum’s market capitalization has swelled to $277.9 billion.
The ongoing recovery trend has shown signs of a “double bottom” formation, which is typically seen towards the end of a correction phase. If this pattern continues as expected, the value of Ethereum could potentially increase by 21%, reaching approximately $2800. Further growth might push it towards $3100.
In simpler terms, a strong rebound pattern on the Relative Strength Indicator (RSI) around the $2200 level suggests that buyers are taking control in this area, indicating potential for price increases.
Contrarily, I’ve observed a significant increase in the Ethereum (ETH) supply on exchanges, reaching approximately 21.3 million coins. This surge might suggest that speculative traders are looking to realize their profits. If the $2800 price level maintains its strength, this trend could potentially lead to an extended consolidation phase, testing the resilience of the $2000 bottom support once more.
In summary: The rising Ethereum supply held by exchanges is counterbalanced by large-scale and institutional buying, which, coupled with a significant trend reversal, points towards a positive prediction for Ethereum’s price movement.
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2024-09-16 16:20