As a seasoned analyst with over two decades of experience in the crypto market, I’ve seen my fair share of bearish and bullish trends, and the current Ethereum scenario seems to be a blend of both. The recent drop below $3000 is undeniably concerning, but I am intrigued by the whale accumulation that has emerged amidst the market correction.
In the opening days of August, the price of Ethereum showed a strong downward trend, largely due to escalating geopolitical conflicts in the Middle East. This negative flow in the ETH ETF has added weight to the bearish perspective, causing Ethereum to fall below $3000 on Friday. The question now is whether this trend will persist next week or if buyers are prepared to regain control over the altcoin’s price.
Whales Accumulation Emereged Amid Marke Correction
Lately, there’s been noticeable whale activity in the Ethereum market, as indicated by recent data. This could potentially mark a bullish turnaround. Data from the on-chain tracker Lookonchain reveals that a savvy investor with a high success rate bought 2,424 ETH ($7.22M) today. This latest purchase follows a significant accumulation, as this same investor has also acquired 19,436 ETH ($68.25M) since May 29, at an average price of $3,511.
Buying whales tend to suggest a high confidence in the asset’s future growth, yet the Ethereum price persists in falling, having dropped below the $3000 mark.
The smart money with a 100% win rate bought 2,424 $ETH($7.22M) 1 hour ago!
He has bought 19,436 $ETH($68.25M) at $3,511 since May 29!
— Lookonchain (@lookonchain) August 3, 2024
Ethereum Price Set to Test Major Support With Weekend
Today’s Ethereum price prediction indicates a 3% decrease, reaching approximately $2,895. This decline would lower its market cap to around $345.8 billion. Interestingly, if we look at the daily chart, Ethereum is mere 3% away from retesting the support level of a multi-month flag pattern on that same chart.
The figure takes on a rectangle-like structure, similar to a flag hanging from a pole. The quick price jump creates the pole, while two straight lines define the rectangle, symbolizing the range in which the price stabilizes.
Consequently, if this support level is bounced off, it might initiate a 30% surge aimed at testing the resistance of the flag pattern. Overcoming this resistance could mark the conclusion of the correction phase, potentially propelling prices towards $5000.
As a crypto investor, when I see the Relative Strength Index (RSI) approaching the oversold zone, it often sparks my interest to consider buying as it might signal an upcoming rebound.
Ethereum August Performance Reveals High Volatility
Based on information from Coinglass, an analysis of Ethereum’s price trends during August over different years shows noticeable volatility. The returns for this month have ranged quite a bit, with the highest return being +92.86% in 2017 and the lowest being -34.79% in 2018.
In summary, August saw an overall gain of 7.47% on average, yet the middle value (median) was a loss of -7.33%. This discrepancy suggests that Ethereum’s market performance during this month may have been quite volatile.
Instead, if the price breaks down following the flag pattern, it could significantly increase selling pressure and potentially drive the cost of Ethereum down to around $2400.
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2024-08-04 00:12