Ethereum Price Prediction: Ethereum (ETH), the world’s second-largest cryptocurrency, has been experiencing a lateral trading pattern for over a month, fluctuating between two key levels at $2400 and $2137. The appearance of daily candles with rejection wicks at both ends signifies a prevailing uncertainty among investors. Recently, a sharp market downturn, partly attributed to speculated rejections of spot Bitcoin ETFs by the US SEC as reported by Matrixport, a digital asset financial services firm, resulted in a notable 6.5% drop in the ETH price. This decline led to the breach of a crucial support trendline, hinting at the risk of further corrections.
Is Ethereum Headed for a Steeper Slide?
- A bearish breakdown below the support trendline hints at an early upcoming correction.
- A healthy retracement in ETH price should bolter buyers to revive exhausted bullish momentum,
- The intraday trading volume in Ether is $19.3 Billion, indicating a 53% gain.
Over the past eight weeks, the Ethereum price has shown signs of recovery, evident from an ascending trendline on the daily chart. This trendline has historically served as a strategic buying point for investors during market dips, indicative of a robust recovery.
However, during the current period of consolidation, Ether has been facing substantial resistance at the $2400 mark. The recent downturn, coinciding with the broader market sell-off, pushed the price below both the 23.6% Fibonacci retracement level and the established support trendline.
If the daily candlestick closes beneath this critical threshold, it could pave the way for sellers to exert additional downward pressure, potentially triggering a further 20% price decline, bringing the ETH price down to approximately $1750.
Ethereum Long-Term Holder Ratio Surpasses Bitcoin
While current short-term trends suggest a cautious or downward trajectory for the Ethereum price, an analysis of the “Holder Ratio” chart presents a promising outlook for the cryptocurrency. In a retrospective of 2023, on-chain data from Intotheblock showcased on the X-platform, revealed that the proportion of long-term Ethereum holders exceeded that of Bitcoin for the second time. This vital statistic underscores a growing trend of Ethereum investors committing to hold their assets for extended periods, outpacing similar commitments among Bitcoin investors. This increase in long-term holding is significant as it reflects deepening confidence in Ethereum’s prospects and stability
- Relative Strength Index (RSI): The daily RSI slope drops below the midline reflecting the sellers are strengthening their group over
- Exponential Moving Average (EMA): The ETH price above daily EMAs(50, 100, and 200) hints the broader market is strongly bullish.
Related Articles:
