Over the past two days, Ethereum has experienced a downturn, and there’s a growing concern that the situation could worsen given persistent unfavorable factors. The amount of Ethereum held on exchanges is increasing, the Ethereum Foundation is selling, and U.S. bond yields are escalating. Therefore, the question remains: Will Ethereum reach $4,000 or will it plummet below $3,000 in the near future?
Ethereum Foundation Sells ETH
According to data observed by LookOnChain, it appears the Ethereum Foundation is still offloading its Ether supply. On Wednesday alone, they sold 100 ETH, marking a trend that began in June of last year. To date, they have disposed of approximately 4,566 ETH tokens, equivalent to nearly $13 million in value.
As a crypto investor, I’ve noticed that when insiders sell their holdings, it can raise concerns since they typically have more information about a project than outside investors like me. However, despite this, the Ethereum Foundation still maintains a significant stash of ETH in its treasury. In fact, according to DeFi Llama, they’re sitting on over $900 million worth of ETH. This certainly gives a bullish outlook on Ethereum, as it suggests that those with intimate knowledge of the project have faith in its future.
Over the last few weeks, the amount of Ethereum tokens held by exchanges has been steadily climbing, indicating that more investors are offloading their assets. According to data from Chainalysis, this trend has strengthened since hitting a low point on November 24. An uptick in exchange balances typically suggests that investors are selling their holdings.
The bond market is currently emitting concerning indicators in both the stock and crypto markets. The 30-year yield is approaching a significant threshold of 5%, which is its highest level in nearly two years. Additionally, short-term yields such as the 10-year and 5-year are continuing to climb, suggesting that investors expect the Federal Reserve to adopt a more aggressive stance. Typically, Ethereum and other cryptocurrencies perform poorly when yields are on the rise.
Ethereum Price Analysis: Triple Top Or Inverse H&S?
Over a span of three days, the Ethereum price graph exhibits conflicting indications due to two contrasting formations. On one hand, there’s optimistic potential for an inverse head and shoulders pattern emerging. In this scenario, the ‘head’ is currently at approximately $2,156, with ‘shoulders’ around the $3,000 price point. The ‘neckline’ for this formation can be found near the $4,000 level.
If the Ethereum chart forms an Inverted Head and Shoulders pattern, there’s a strong possibility that the Ethereum price could surge to approximately $4,000, potentially reaching an unprecedented peak of $4,800. This optimistic prediction for Ethereum prices is bolstered by its impressive performance during the first quarter of the year.
However, it’s important to note that the coin may have formed a triple-top chart structure approximately at $4,085. This pattern consists of three peaks and a horizontal line, or neckline, at $2,156. If the ETH price drops to this level, it could indicate a 35% decrease from its current point.
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2025-01-08 17:05