Connect with us

ETH

Ethereum Price Poised for Rebound as Institutional Interest Hits Record High

Published

2 months ago

on


The cryptocurrency market witnessed a sluggish trend over the weekend. The leading digital assets Bitcoin (BTC) and Ethereum (ETH) show neutral candle formation on the daily chart indicating no dominance from buyers to sellers. The potential for rebound leans high toward ETH after the recently launched U.S-listed ETFs (Exchange-Traded Funds). The Ethereum price at 200D EMA seeks support to bottom its ongoing correction.

Ethereum Price Faces 13.5% Fall Amid ETF Outflow, But There’s a Catch 

The second-largest cryptocurrency Ethereum witnessed a notable downswing this week following the ETF launch. From the week’s high of $3350, the asset plunged nearly 8% to trade at $3275, while the market cap holds at $393.8 Billion.

The 200D EMA currently stabilizes altcoin from a recent sell-off. However, a recent bearish crossover between the 20D and 100D EMA could accelerate the supply along with the notable outflow from Grayscale Ethereum Trust ETF ETHE.

BITSTAMP:ETHUSD Chart BITSTAMP:ETHUSD Chart
Ethereum Price| Tradingview

The ADX slope uptick at 23% hints the bearish momentum persists in the ETH price forecast, suggesting the potential for extended correction.

If the supply pressure persists, the Ethereum price could plunge another 13.5% to $2800 and seek support from the lower trend of the bull flag. This continuation chart pattern has carried a price consolidation for the past four months, resonating strictly within two converging trendlines.

The flag pattern often spotted at major bull runs offers buyers to replenish bullish momentum for the next leap. 

Moreover, IntoTheBlock recently reported a significant increase in large transaction volumes for Ethereum (ETH), despite a decline in its prices. According to the firm’s data, the total volume of large ETH transactions reached a monthly high following the release of Ethereum ETFs. 

This surge in transaction volume suggests growing institutional interest and demand for the cryptocurrency.

Thus, the Ethereum price is poised for a bullish turnaround which could uplift its asset to $3800-$3750 and challenge the flag pattern resistance. A potential breakout from the overhead trendline will renew the prevailing uptrend and bolster buyers to chase the $5600 mark.

Key Takeaway

Despite a broader bullish trend in the last week of July, the Ethereum price witnessed a notable correction following the debut of the spot ETH ETF. However, a similar pullback was observed in Bitcoin’s post-ETF fall in January, indicating the pattern of temporary pullback to remove the weak hands from the market. As BTC rallied in February and hit fresh ATH, the market participants saw notable growth for Ethereum in August.

Frequently Asked Questions (FAQs)

The significant increase in large transaction volumes, suggests that institutional investors are actively engaging with Ethereum despite the price decline.

The launch of Ethereum ETFs initially led to an influx of institutional interest, driving up large transaction volumes. However, the current pullback mimics the Bitcoin post-ETH fall, indicating the potential of sharp rebound.

The $3100 and $2800 stands as crucial support for ETH buyers if preparing for a counter attack.

Related Articles

✓ Share:

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

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.





Source link

Related Topics:
Continue Reading

Analyst

Fractal Suggests Major Breakout In Q4

Published

2 days ago

on

September 19, 2024

By



Este artículo también está disponible en español.

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.

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. 

Ethereum
Source: X

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. 

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. 

Ethereum price chart from Tradingview.com
ETH price fails to hold support | Source: ETHUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com



Source link

Continue Reading

Bitcoin

‘It’s Almost Over’ – Analyst Benjamin Cowen Predicts Ethereum Bottoming Out Against Bitcoin

Published

2 days ago

on

September 18, 2024

By


Popular 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.”

Source: Benjamin Cowen/X

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].”

Source: Benjamin Cowen/X

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.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney





Source link

Continue Reading

Altcoins

‘Run It Back’ – Crypto Analyst Predicts Massive Rallies for Ethereum and Solana, Says October Will Be ‘Lit’

Published

1 week ago

on

September 12, 2024

By


A 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.” 

Image
Source: Kaleo/X

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.” 

Image
Source: Kaleo/X

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.” 

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney





Source link

Continue Reading
Advertisement [ethereumads]

Trending

    wpChatIcon