Ethereum (ETH) Price Lacks Bullish Momentum Below $2.5K amid Low Demand from Institutional Investors

As a seasoned analyst with over two decades of market observation under my belt, I find myself intrigued by Ethereum’s current position. The 2.5% drop within the past 24 hours is a minor blip on the radar when considering its larger trajectory, as it continues to consolidate in a symmetrical triangular pattern.


On Tuesday during the early European session, Ethereum (ETH) experienced a 2.5% drop in price, trading approximately $2,422 after being denied by its 50-day Moving Average (MA). This major altcoin boasts a market cap of around $291.79 billion and an average daily traded volume of roughly $15.95 billion. Since early August, Ethereum has been consolidating in a symmetrical triangular pattern, indicating a potential breakout may be imminent soon.

Over the last several weeks, the price of ETH has found a strong foundation near approximately $2,300. During this time, over 2.77 million wallets have acquired more than 52 million units of Ether, suggesting a potential upward trend. This could indicate an impending bullish bounce for ETH.

Looking at the technical analysis, it appears that Ethereum’s price could be shaping up as a possible Head and Shoulders (H&S) formation on the daily chart. Additionally, there seems to be a bullish discrepancy with the Relative Strength Index (RSI).

If Ethereum’s price consistently stays above the $2,800 support or resistance level for an extended period, it’s likely that we could see Ethereum approaching its record high within the coming months. Conversely, if it consistently dips below the support range between $2,300 and $2,150, this could establish a bearish trend in the altcoin market, potentially leading to more short-term sell-offs.

However, due to the Federal Reserve’s recent interest rate reduction and the escalating political tensions in the Middle East, it seems quite plausible that these events could spark a new surge in cryptocurrency prices within the short term.

Additionally, it’s expected that the prices of gold and silver will rise before the 2024 U.S. general elections, as a bull market is predicted to commence.

Ethereum Whales Watch from the Sidelines

Based on an analysis of blockchain data, it appears that over 37,300 units of Ethereum were added to centralized trading platforms within the last day, primarily on Coinbase Pro and Bitfinex. This significant rise in Ethereum supply held on centralized exchanges corresponds with a decreased interest in US-based ETH exchange-traded funds (ETFs).

On Monday, I observed that U.S. spot Ether Exchange Traded Funds (ETFs) recorded a net zero cash flow, while U.S. spot Bitcoin ETFs experienced a substantial cash inflow exceeding $235 million. Consequently, this incident has added to the cumulative total net outflow of over $553 million for the U.S. spot Ether ETFs in my ongoing research.

It’s been found through examination of blockchain data that a wallet associated with an Ethereum Initial Coin Offering (ICO) participant, holding approximately 150,000 units, has offloaded over 45,000 Ether, valued at around $113 million, since September 22.

4 hours ago, the individual who took part in the Ethereum ICO and spent around $46,500, has recently sold a sum of approximately $12.22 million worth of ETH (equivalent to 5,000 ETH)!
Starting from September 22nd, this particular whale has offloaded approximately 45,000 Ether (valued at around $113.2 million) at an average price of $2,516. At the moment, it holds a total of about 94,500 Ether (equivalent to roughly $230.2 million).
— Lookonchain (@lookonchain) October 8, 2024

Bigger Picture

The Ethereum network continues to dominate as the uncontested champion in Web3, boasting approximately $45 billion worth of assets secured and more than $84 billion in stablecoin reserves. The Ethereum environment also hosts the most significant decentralized financial (DeFi) platforms, with Lido liquid staking taking the lead, followed by EigenLayer for restaking, AAVE for lending, and Uniswap’s DEX, among numerous others.

Despite the fact that Ethereum has been a dominant player in the blockchain space, it’s now contending with significant competition from emerging layer one chains such as Solana (SOL), Toncoin (TON), Tron (TRX), and Binance Smart Chain (BNB), among others. Here are their current stats:

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2024-10-08 12:31