As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull and bear runs, market rallies, and corrections. The current state of Ethereum (ETH) is a fascinating study, to say the least.
Currently, the price of Ethereum (ETH) is holding steady at $2,435, but it’s facing significant selling pressure. This trend seems to be reflecting negatively on the U.S.-based spot Ethereum ETFs, as they showed little to no growth on Monday, October 7, with zero inflows indicating that the investment product isn’t yet attracting substantial retail or institutional interest.
Following its debut in July 2024, Ethereum ETFs have experienced a total of $550 million in withdrawals, which is markedly different from Bitcoin ETFs. Conversely, Bitcoin ETFs are experiencing robust demand with an inflow of over $235 million on Monday alone. Since their launch in January, the inflows into Bitcoin ETFs have exceeded $18.7 billion, indicating a stark contrast between these two investment options.
Over the course of 2021, I’ve noticed that Ethereum hasn’t been keeping pace with Bitcoin in terms of price performance. In fact, when Bitcoin experiences a dip, Ethereum seems to correct even more profoundly. For instance, while Bitcoin has dropped by 2.33% over the past week, Ethereum has plunged nearly 8%, falling to around $2,400. This trend is particularly noteworthy given that Bitcoin’s current market cap stands at a staggering $1.24 trillion and its 24-hour volume amounts to $30.57 billion.
As per crypto expert Ali Martinez’s analysis, Ethereum is presently moving within a symmetrical triangle configuration. Martinez emphasized that if Ethereum manages to break above the $2,300 to $2,600 range in a conclusive manner, it will significantly influence the direction of Ethereum’s price trend going forward.
Based on this Ethereum chart configuration, its price may experience a substantial shift if it either surges above or plunges below the depicted trend line.
#Currently, Ethereum is found within an equilateral triangle in its trading pattern. If it manages to maintain a closing price above or below the range of $2,300 – $2,600, this could indicate the direction in which Ethereum’s trend will head.
— Ali (@ali_charts) October 8, 2024
Martinez mentioned that if the price of ETH drops below $2,300, it may plunge an additional 30%, potentially falling to around $1,600. Conversely, if Ethereum rises above $2,600, it could pave the way for a surge towards $6,000.
Ethereum Foundation Continues to Sell ETH
In the past few hours, a wallet associated with the Ethereum Foundation deposited a total of 1,250 ETH, worth around 43.03 million, to crypto exchange Bitstamp. This wallet notably received a transfer of 51,251 ETH – worth $51,000 at the time – from the Ethereum Foundation’s wallet (0x5ed) back on November 18, 2015. The recent deposit marks one of only five significant ETH transactions recorded in the past seven years.
Approximately 50 minutes ago, a digital wallet associated with the Ethereum Foundation transferred 1,250 Ether (equivalent to around $3.03 million USD) to the Bitstamp platform.
On November 18, 2015, a notable transaction of 51,251 Ether ($51K) was sent from the Ethereum Foundation’s wallet (0x5ed) to this wallet. This deposit is one of only five substantial Ethereum transfers made at that time.
— Spot On Chain (@spotonchain) October 8, 2024
As a researcher examining the cryptocurrency market this year, I’ve observed significant amounts of Ethereum (ETH) being sold off by the Ethereum Foundation and Vitalik Buterin. This mass selling has cast a shadow over the community’s optimism, causing a decline in confidence towards the potential rise in ETH prices.
Additionally, the 0.5% decrease in Fed interest rates in September positively impacted Ethereum and the broader altcoin market. Yet, the robust employment figures reported for September have reduced the likelihood of another 0.5% rate cut in November considerably. Now, analysts are evaluating the potential effects of the upcoming US elections on market behavior.
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2024-10-08 15:41