Will Ethereum Price Still Hit $5K Even After Its Worst Q3 in 5 Years?

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As a seasoned researcher with years of experience in the cryptocurrency market, I find myself intrigued by the current state of Ethereum (ETH). The Q3 performance this year has indeed been disheartening, with ETH showing its worst returns since 2019. However, the resilience of ETH above $2000 amidst this downturn offers a glimmer of hope.

On Wednesday during U.S trading hours, the cryptocurrency market experienced a minor dip, with Bitcoin finding it tough to stay above $60,000. Simultaneously, Ethereum‘s price fell by 1.8%, continuing its correction as Q3 drew closer to an end. Could the predicted Federal Reserve rate reduction influence the market trends and empower Ethereum buyers to rebuild their bullish momentum?

Can Ethereum Price Reach $5K Despite Its Worst Q3 Performance in 5 Years?

Based on Coinplus information, the Ethereum price forecast has demonstrated its poorest quarterly returns for the last five years during Q3 2024. As it currently stands, returns for this quarter are down by 33.21%, and there’s a chance they could drop even more since there’s still over a week left in September.

Despite ongoing market conjecture about a potential Fed interest rate reduction, the resilience of Ethereum’s price above $2000 continues. Furthermore, historical data from Q4 since 2016 indicates a robust ETH price rebound trend for Ethereum, averaging a return of approximately 23.39%.

Will Ethereum Price Still Hit $5K Even After Its Worst Q3 in 5 Years?

As an analyst, I’ve recently observed some intriguing trends in Ethereum’s holder strategies, as suggested by Cryptoquant’s latest analysis. Despite the market turbulence, large-scale Ethereum holders with 100k+ ETH seem to be maintaining their positions, indicating a strategy of patience and commitment.

In the meantime, those who own between 10,000 to 100,000 units appear to be gradually increasing their holdings, suggesting a cautious optimism. Conversely, individuals with balances ranging from 100 to 1,000 Ether seem to be consistently reducing their holdings.

This pattern shows that various types of investors are adopting diverse strategies, possibly due to broader economic conditions and the way Ethereum’s market is doing.

Generally speaking, when short-term investors sell off, it can lead to price fluctuations and short-term drops. This situation might offer a chance for experienced traders (often referred to as ‘whales’) to buy at lower prices. If this theory is correct, the dip in Q3 could stimulate renewed buying interest among these big players, potentially keeping the $5,000 target price within reach.

$ETH Holders Show Diverging Strategies Amid Market Uncertainty
Major investors (those with 100,000 or more coins) seem to be holding onto their assets without much activity. Intermediate investors (between 10,000 and 100,000 coins) are gradually adding to their holdings. Smaller investors (between 100 and 1,000 coins) are continuously selling off their coins. – By Darkfost_Coc (paraphrased version)
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— CryptoQuant.com (@cryptoquant_com) September 18, 2024

ETH Price 13% Away From Major Suppor Retest

Over the past four months, I’ve observed a consistent decrease in Ethereum’s price from $3,971 to its current level of $2,278, representing a significant drop of approximately 42.67%. This downtrend is further emphasized by the downward sloping 20 and 50-day Exponential Moving Average, suggesting that the market sentiment remains skewed towards a ‘sell-the-bounce’ mentality.

Maintaining current selling trends might cause the price of ETH to drop by approximately 13% and potentially touch the upward-sloping trendline that’s been in place since June 2020. Historically, whenever there’s a reversal at this dynamic support level, the value of ETH has doubled, suggesting a robust area for accumulation.

Will Ethereum Price Still Hit $5K Even After Its Worst Q3 in 5 Years?

If sellers manage to breach the established downward trendline, there’s a possibility that the price of Ethereum might initiate a substantial corrective period.

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2024-09-18 21:05