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Why Ethereum Price Is Stalling Despite ETH ETF Approval

Published

2 months ago

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Ethereum price performance has been underwhelming for quite some time. The year-to-date return for ETH is the worst when compared with top cryptocurrencies such as Bitcoin, Solana, and Ripple. ETH is up only 38% in the past seven months despite the landmark approval of spot ETFs.

BTC, ETH, SOL, BNB, XRP PerformanceBTC, ETH, SOL, BNB, XRP Performance
BTC, ETH, SOL, BNB, XRP Performance

Ethereum Price Remains Grounded

Ethereum price crashed 12% since the spot ETF approval on July 23 and formed a temporary low at $3,087. Since then, ETH has bounced 6% and currently trades under $3,300. Despite the spot ETF being a massively bullish development, Ether prices have failed to react. Why?

But the three critical reasons for Ethereum’s lackluster performance are:

  1. Ethereum’s narrative is abstract; it is a world computer, which is a little hard to sell to the traditional finance bunch. But Bitcoin’s digital gold narrative resonates with older investors.
  2. Additionally, the spot Ethereum ETF lacks one key component—staking. The staking service has still not been approved by the SEC or concerned regulators, which could be the second reason investors might not be immediately interested in ETH.
  3. The third reason for ETH’s dampened performance is BTC, which has been in the spotlight for quite some time due to the upcoming keynote address from presidential candidate Donald Trump.

The Bitcoin conference could also clear up the ongoing rumors about a potential “National Strategic Bitcoin Reserve.”

Read more: Peter Schiff Blasts RFK Jr’s Bitcoin Buy Plan As ‘Vote-Buying’ Tactic

ETH Price Could Trigger Massive Rally Soon

As explained in a previous Coingape article, ETH is following in Bitcoin’s footsteps, which crashed 19% after the spot Bitcoin ETF approval on January 10 and rallied 90% in the next five months to set up an all-time high. If history repeats, Ethereum price could be preparing for a massive rally.

BTC/USDT vs. ETH/USDT 1-day chartBTC/USDT vs. ETH/USDT 1-day chart
BTC/USDT vs. ETH/USDT 1-day chart

The short-term outlook for Ethereum price looks bearish with a string of lower highs. One sign of relief is that ETH has not produced a lower low.

A sweep of the equal lows at $2,539 is the ultimate buying opportunity, especially if ETH repeats Bitcoin’s post-ETF rally. In such a case, the upcoming rally could propel Ether to the $4,000 psychological level. If the bullish momentum remains beyond the aforementioned level, Ethereum Price Forecast suggests Ether could attempt to retest the current all-time high of $4,868.

ETH/USDT 12-hour chartETH/USDT 12-hour chart
ETH/USDT 12-hour chart

On the other hand, if Ethereum breaks the weekly support level at $2,539, it would invalidate the bullish thesis by producing a lower low on the higher timeframe. In such a case, ETH could drop as low as $2,000.

Frequently Asked Questions (FAQs)

Ethereum’s abstract narrative, lack of staking service, and Bitcoin’s dominance in the spotlight are three key reasons holding ETH back.

ETH has had the worst year-to-date return, up only 38% in the past seven months, lagging behind Bitcoin, Solana, and Ripple.

Yes, if history repeats Bitcoin’s post-ETF rally, Ethereum could be preparing for a massive rally, potentially propelling ETH to the $4,000 psychological level or even retesting its all-time high of $4,868.

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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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Analyst

Fractal Suggests Major Breakout In Q4

Published

1 day ago

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September 19, 2024

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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



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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.

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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 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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