As a seasoned researcher with years of experience in the cryptocurrency market, I’ve seen my fair share of price fluctuations and bullish fundamentals that failed to translate into market performance. The current state of Ethereum (ETH) is a classic example of this phenomenon.
Despite the impressive growth of other cryptocurrencies, Ethereum‘s (ETH) price finds it difficult to surge significantly higher. Even Bitcoin‘s (BTC) performance over monthly and yearly periods outshines that of Ether. It’s intriguing because Ethereum’s underlying fundamentals are optimistic, yet its value remains stagnant.
As reported by CryptoQuant on Monday, August 26th, a substantial amount of approximately $34 million worth of Ether was staked, indicating that investors are confident and prepared to hold Ether for extended periods due to its locked supply for staking purposes. However, because Ethereum’s market value has not yet reflected these positive fundamental trends, some traders may overlook Ether in the short term.
However, one development that could change this neutral-to-bearish outlook is if Ether price flips the $3,000 psychological level.
Ethereum Price Analysis: ETH Bulls Struggle
Currently, Ethereum is being traded at approximately $2,26, having rebounded from its support level of $2,618. This bullish trend might be due to Bitcoin surpassing the $60,000 psychological barrier. Now, Ethereum encounters a crucial test with Bitcoin holding steady – whether it will continue its upward trend or retreat to critical points. A bounce back from the $2,618 support level could offer an attractive opportunity for investors on the sidelines. However, if Ethereum pushes forward toward the resistance convergence near $3,000, it might trigger frenzied buying and cause ETH to soar further. In any case, Ethereum needs to surpass the key psychological level mentioned above to initiate a clear directional movement.
Should it be successful, the cost of ETH might prompt a surge towards the range of $3,352 to $3,497, which has previously served as resistance. In certain scenarios, Ethereum’s price could even challenge the $3,500 barrier again, potentially resulting in a 30% increase in total value.
One way to rephrase this in a more natural and easy-to-understand manner is: The Whale Transaction Count metric by Santiment, which measures large transactions on Ethereum, isn’t showing any significant increases in $100,000 or $1,000,000 transfers. This suggests that the whales have not yet decided to cash out their holdings.
Furthermore, the Network Realized Profit/Loss (NPL) indicator significantly increased last Friday, suggesting that some investors cashed in on the rally by realizing their profits. Although this trend is not extremely bullish, it implies that short-term investors might have finished cashing out and are less likely to create resistance if ether continues to rise.
Will ETH Price Hit ATH in 2024?
Based on Polymarket’s data, around three-quarters of investors predict that Ethereum’s price won’t reach a new peak (all-time high) by 2024. On the other hand, approximately one in five believe Ethereum will exceed $4,868 during the last quarter of 2024.
While the technical and on-chain data points to a bullish outlook for Ethereum price, investors need to closely monitor Bitcoin price for sudden reversals. If ETH slips below the $2,618 support level and flips it into a resistance level, it will invalidate the bullish thesis. Such a development could see Etheruem price crash by 4% before sidelined buyers consider stepping in.
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2024-08-26 18:12