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Ethereum Price Rally to $5,000 Imminent As Exchange Reserves Shrink

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2 months ago

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The cryptocurrency market is poised to end the third week of July on a bullish note. Bitcoin reached a peak of $67,466 on Friday, marking a 15% weekly surge, while Ethereum price surged to a high of $3,540, achieving a 13.7% rise over the week. Looking ahead, Ethereum will capture significant investor attention as five spot Ethereum exchange-traded funds (ETFs) are slated to commence trading on the Chicago Board Options Exchange on July 23.

Ethereum Price Poised for a Breakout with Upcoming ETFs Launch

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

Ethereum, the second-largest cryptocurrency by market cap showcased a remarkable recovery in the past two weeks. The bullish turnaround has boasted the assist from $2811 to $3481 registering a growth of 23.8% while the market cap surged to $419.2 Billion.

The recent price jump above daily EMAs (20, 50, 100, and 200) accentuates a positive shift in market sentiment. Moreover, the 4-hour chart revealed the V-shaped recovery daily as the inverted head and shoulder formation. 

This bullish reversal chart pattern signals a bottom formation and potential for a new breakout opportunity for traders.

Moreover, the Ethereum transition to Proof-of-Stake (PoS) has catalyzed a significant decline in ETH exchange reserves, as highlighted by on-chain analyst elcryptotavo. Since the PoS implementation, Ethereum holders have increasingly opted to stake their ETH, reducing exchange liquidity.

The approval of the Ethereum ETF has further intensified this trend by providing a new investment vehicle for institutional and retail investors. This scarcity effect is expected to drive up Ethereum prices as supply constraints become more pronounced.

Furthermore, the Chicago Board Options Exchange (Cboe) has officially announced that five Ethereum spot ETFs, managed by VanEck, Invesco, Fidelity, 21Shares, and Franklin Templeton, are set to begin trading on July 23.

Thus, the Ethereum price forecast hints potential breach of the overhead neckline at $3550 and a 9% rise before challenging Flag pattern resistance.

BITSTAMP:ETHUSD Chart Image by sahilmahadik07BITSTAMP:ETHUSD Chart Image by sahilmahadik07

The Ether coin has developed this continuation pattern amid the past 4 months of consolidation. The pattern’s two parallel trendlines as major resistance and support allow buyers to recuperate the exhausted bullish.

The Relative Strength Index indicator at 59% indicates a positive trend for ETH’s future and the potential of entering a high momentum.

A potential breakout from flag resistance will better signal the uptrend continuation and bolster buyers to chase the $5500 target.

Frequently Asked Questions (FAQs)

Ethereum spot ETFs are investment funds traded on stock exchanges, which hold Ethereum as their underlying asset.

A decline in ETH exchange reserves refers to a decrease in the amount of Ethereum held on cryptocurrency exchanges

Amid the upcoming launch of Spot Ethereum ETFs and formation of continuation pattern flag, the ETH price is well-positioned to challenged $4891 peak

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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.





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

Published

7 days ago

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September 12, 2024

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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.” 

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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.

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Ethereum Bullish Signal: Adoption Hits Four-Month High Rate

Published

1 week ago

on

September 10, 2024

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On-chain data shows the Ethereum adoption rate has hit a four-month high, which could be bullish for the cryptocurrency’s price.

Ethereum Network Growth Has Shot Up Recently

According to data from the on-chain analytics firm Santiment, the ETH blockchain has recently created many wallets. The indicator of relevance here is the “Network Growth,” which keeps track of the total number of new addresses appearing on the network daily.

Naturally, an address is considered to have been used when it made its first transaction on the chain. The Network Growth counts the daily number of such addresses that are becoming active for the first time.

When the value of this metric is high, it means the users have just opened up a large amount of new addresses on the network. This could be because of new investors coming into the market or old ones who had left earlier returning to it.

The trend can also occur when existing users open fresh addresses for stronger privacy. In general, all of these would happen at once whenever the metric registers a spike, so some adoption could be assumed to be taking place on the net.

On the other hand, the low indicator implies that not many new addresses are being created on the network, a potential sign that interest in cryptocurrency is low.

Now, here is a chart that shows the trend in the Ethereum Network Growth over the last few months:

Ethereum Network Growth

As displayed in the above graph, the Ethereum Network Growth observed a sharp spike yesterday, as 126,210 new addresses appeared on the blockchain within 24 hours.

This latest value is the largest indicator observed in more than four months, suggesting that the asset attracts an extraordinary number of users.

Generally, adoption is bullish for any asset in the long term, as a wider user base can provide a stronger foundation for future price moves to grow. In the short term, though, spikes in the Network Growth can take the coin’s price in either direction.

The graph shows that spikes in the indicator coincided with some local tops in August. These spikes were a sign of FOMO around the price surges, and excessive hype has never been positive for any asset, which may be why the tops occurred.

This time around, however, the increase in the Network Growth has come as Ethereum has been going down instead. This surge in interest while the asset isn’t doing so well could potentially help fuel a rebound.

ETH Price

Ethereum has struggled recently, as its price is currently under the $2,280 mark.

Ethereum Price Chart



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Benjamin Cowen

Here’s What Could Happen in December 2024 for Ethereum (ETH), According to Analyst Benjamin Cowen

Published

1 week ago

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September 9, 2024

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Crypto analyst Benjamin Cowen says that Ethereum (ETH) could finally reach a price bottom sometime in December of this year.

In a new strategy session, Cowen tells his 812,000 YouTube subscribers that the unemployment rate in the US has historically topped out in December, coinciding with a bottom in crypto markets.

Given that unemployment is trending upward, and has in the past peaked in December, Cowen speculates that Ethereum could reach its bottom in the same month as well. He also notes that ETH tagged its logarithmic trend line in December in both 2016 and 2019.

“December 2024, the number of states where the unemployment rate is rising over the last six months. When does it top? Q4. Higher lows and higher highs. Lows are in April, highs are in Q4. What if it’s just trending up into a higher high in December, that ends up being backdated some type of… 

It doesn’t have to be a 50% crash. There are some recessions that are more mild and aren’t like you’re Dot Com crash or your financial crisis, but it would line up with basically everything. 

It would even line up with Ethereum, finally going up to its logarithmic trend line which is what it did in 2016 and 2019 in December. December of 2016 and December of 2019.”

Source: Benjamin Cowen/YouTube

Cowen says his bottom price target for Ethereum is $1,200, representing a nearly 50% decline from current prices.

At time of writing, Ethereum is worth $2,306.

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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.

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