ETH
Key Reasons Behind Ethereum Price Delay for $4,000 Rally
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7 hours agoon
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adminThe Ethereum price bounced from $2220 to $2550 in the last two weeks, registering a 15.3% growth. The bullish narrative largely followed the market speculation for the U.S Fed interest rate, replenishing investors’ interest in risky assets like cryptocurrency. But will the macroeconomic factor be enough to push ETH value past $4000?
Key Factors Holding Back Ethereum Price Surge to $4,000
This week, the cryptocurrency market accelerated the bullish momentum following the 0.5% rate cut by the U.S. Fed. The recuperated interest in risky assets has pushed the BTC and ETH prices along with major altcoins for trend reversal. However, the Ethereum price could struggle to drive a sustainable rally to $4000 due to the following reasons:
- ETH/BTC Pair Hits 40-Month Low as Bitcoin ETF Flows Outperform
- Ethereum Foundation’s Ongoing ETH Sales Fuel Bearish Sentiment
- Rising ETH Supply on Exchanges Fuels Fears of Potential Sell-Off
ETH/BTC Pair Hits 40-Month Low as Bitcoin ETF Flows Outperform
According to IntoTheBlock analytics, the ETH/BTC pair recently dropped to a 40-month low, highlighting Ethereum’s underperformance compared to Bitcoin. While BTC ETF flows have mainly remained positive, ETH ETFs have seen significant outflows. This suggests that institutional investors favor Bitcoin’s relative stability over Ethereum’s higher volatility and risk-reward profile.
If the trend continues, the Ether coin could struggle to drive a high-momentum rally and experience prolonged consolidation.
ETH is trading at its lowest level against BTC in over 40 months
While ETF flows for $BTC have been largely positive, $ETH has experienced mostly outflows. This trend suggests institutional investors are favoring Bitcoin’s relative stability over ETH’s higher risk, high-reward… pic.twitter.com/Eie6CBZ3c4
— IntoTheBlock (@intotheblock) September 20, 2024
Ethereum Foundation’s Ongoing ETH Sales Fuel Bearish Sentiment
A notable factor contributing to ETH price volatility is the ongoing selling sphere from the Ethereum Foundation wallet. The Ethereum Foundation sold 300 ETH on Friday, approximately $763K, as per the Lookonchain data. Since January 1st, the Foundation has sold a total of 3,466 ETH( worth $9.67 Million) at an average price of $2,791.
On average, the Foundation executes a sale every 11 days, with an average sale size of 151 ETH ($421K). Typically, such large sales may signal a cautious outlook on future price movements, but the wallet associated with the Ethereum foundation adds fuel to the bearish sentiment.
The #Ethereum Foundation sold 300 $ETH($763K) again 4 hours ago!
Since Jan1, 2024, the #Ethereum Foundation has sold a total of 3,466 $ETH($9.67M) at an average price of $2,791, averaging one sale every 11 days, and averaging 151 $ETH($421K) for each sale.
Address:… pic.twitter.com/aAhaNNrT97
— Lookonchain (@lookonchain) September 20, 2024
Rising ETH Supply on Exchanges Fuels Fears of Potential Sell-Off
According to the Santiment analytics, the ETH supply on exchange has been steadily growing, reaching 21.46 million coins. A significant inflow into exchanges heightens the risk of potential selling, which can limit the asset’s growth potential.
Thus, the Ethereum price prediction could delay the $4000 rally if the current recovery witnessed profit booking from short-term holders.
ETH Price 10% Away from Major Reversal or Breakout
By press time, the ETH price trades at $2,555 while boosting a market cap of $307.6 billion. If the broader market recovery persists, the coin price could surge another 10% before challenging the $2,800 barrier. This resistance and the 200-day exponential moving average created a suitable area for sellers to recuperate their bearish momentum.
If the overhead resistance stands firm, the Ethereum price will revert lower and re-challenge the $2,000 support.
On the contrary, a bullish breakout from the $2800 line would strengthen the buyer’s grip over this asset and drive a $3,000 breakout.
Frequently Asked Questions (FAQs)
Ethereum’s rally to $4,000 is being delayed by several factors, including the ETH/BTC pair hitting a 40-month low, ongoing ETH sales by the Ethereum Foundation, and a rising supply of ETH on exchanges
The ETH/BTC pair dropped to a 40-month low due to Ethereum’s underperformance compared to Bitcoin
Ethereum faces significant resistance at the $2,800 level, which is strengthened by the 200-day exponential moving average
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Recent Ethereum price action saw ETH reaching another low of $2,150 on September 6, raising concerns of a more severe drop towards the $2,000 price level. Although these concerns were eased with a subsequent bounce to $2,460 on September 13, Ethereum remains largely in a downtrend, with a triple-bottom price formation now shaping up.
Interestingly, this triple bottom formation is not new for Ethereum. As technical analysis points out, the current price action seems to repeat a similar playout in mid-2021.
Ethereum Fractal Suggests Rally In Q4
According to a technical analysis by crypto analyst CryptoBullet on social media platform X, Ethereum is shaping up to form a triple bottom price formation on the 1D candlestick time frame. While the third bottom has yet to be fully completed, the analyst draws attention to a similar pattern that unfolded between June and August 2021.
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During those three months, Ethereum’s price fluctuated up and down to create three distinct lows just above the $1,675 mark. After the third low was established, Ethereum experienced a significant bullish rally that propelled it to break through and establish its current all-time high. This upward movement became even more pronounced after a fractal pattern emerged in August 2021, signaling a strong momentum shift.
Recent market dynamics have prompted Ethereum to create two bottoms of around $2,150 in August and September. Interestingly, a recent rejection at the $2,450 resistance has seen Ethereum pushing on a decline. This has prompted analyst CryptoBullet to highlight the possibility of a third low in October, thereby completing the triple bottom formation.
Price formations in cryptocurrency markets are known to repeat over time, often following patterns that can help traders anticipate future movements. While no two market conditions are exactly the same, studying past price movements provides valuable insights into what may happen in the future. A similar playout of the 2021 price action puts on a similar surge for Ethereum in Q4 2024. Notably, the analyst envisioned a rally towards the $3,700 price level.
What’s Next For ETH?
At the time of writing, Ethereum is trading at $2,320 and continues to exhibit a weak short-term outlook. If Ethereum fails to clear the $2,340 resistance, it could start another decline towards $2,150.
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This weak performance and outlook are even more pronounced compared with Bitcoin. As such, Ethereum/Bitcoin is now at its lowest level since April 2021, a staggering 41-month low. Most of this lackluster action has also been exacerbated by selloffs from a few large holders. For instance, Ethereum co-founder Vitalik Buterin recently came under scrutiny for selling $2.2 million worth of Ethereum.
Featured image created with Dall.E, chart from Tradingview.com
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Bitcoin
‘It’s Almost Over’ – Analyst Benjamin Cowen Predicts Ethereum Bottoming Out Against Bitcoin
Published
3 days agoon
September 18, 2024By
adminPopular crypto analyst Benjamin Cowen thinks Ethereum (ETH) is close to bottoming out against Bitcoin (BTC).
Cowen tells his 856,500 followers on the social media platform X that he thinks the ETH/BTC ratio will bottom out between 0.03-0.04 BTC and then trend up next year.
“It could bottom as early as this week or as late as December. Based on prior capitulations, I think it will happen sooner rather than later…
More people need to understand that ETH/BTC is not equivalent to ETH/USD. Last cycle, ETH/USD kept dropping even after ETH/BTC bottomed. But whenever ETH/BTC does find its cycle low, it should correspond with at least a temporary bounce for ETH/USD.”
Cowen compares the current ETH/BTC chart to the relationship between the top two crypto assets back in 2019.
“While ETH/BTC bottomed shortly after the 1st rate cut in 2019, ETH/USD trended down until [end of year].”
Cowen has been on target with ETH/BTC this year.
ETH is trading at $2,326 at time of writing. The second-ranked crypto asset by market cap is up more than 1.5% in the past 24 hours.
BTC is trading at $60,252 at time of writing. The top-ranked crypto asset by market cap is up more than 3% in the past day.
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Altcoins
‘Run It Back’ – Crypto Analyst Predicts Massive Rallies for Ethereum and Solana, Says October Will Be ‘Lit’
Published
1 week agoon
September 12, 2024By
adminA widely followed crypto strategist believes sharp recoveries are in store for Ethereum (ETH) and its competitor Solana (SOL).
Starting with the top smart contract protocol, pseudonymous analyst Kaleo tells his 647,300 followers on the social media platform X that his bearish scenario for Ethereum is no longer valid.
The trader shares a chart suggesting that ETH has already printed a local bottom and is now gearing up for big rallies.
“The yellow line is cursed.
The white line in this thread has been goated and will continue to be goated.
Run it back.”
Looking at the trader’s chart, he seems to predict that Ethereum will rally to $4,400. At time of writing, ETH is trading for $2,383.
As for Solana, Kaleo shares a chart suggesting that SOL is now en route to a new all-time high after holding support at $120.
“The white lines were and always have been the path. Run it back.”
Based on the trader’s chart, he seems to predict that SOL will rally to a new record level at around $400. At time of writing, SOL is worth $135.63.
Kaleo also says that Q4 will be incredibly bullish for crypto after witnessing an extended corrective period over the last six months or so.
“Uptober is gonna be lit. Upvember will be even better.”
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