As a seasoned analyst with over two decades of experience in traditional and digital markets under my belt, I’ve seen bull and bear cycles come and go. However, the current trajectory of Ethereum (ETH) is particularly intriguing. The gradual surge in price coupled with increased institutional interest and a potential breakout seems to suggest a robust uptrend for ETH.
Over the last few weeks, Ethereum (ETH) has seen a gradual increase in bullish sentiment. This leading altcoin, valued at approximately $315 billion and averaging about $12.7 billion in daily trading volume, experienced a 9% growth over the past week, trading around $2,623 during the mid-London session on Friday, October 18.
In simpler terms, the cost of Ether compared to the U.S. dollar is getting close to a significant barrier that might lead to either an increase or a bounce-back soon. Looking at it from a technical perspective, if the bulls can maintain control over the price above $2,600, Ether’s value could potentially reach around $2,800 – this level aligns with the daily 2.618 Fibonacci Extension.
On the other hand, there’s a possibility that Ether’s price might dip back down to approximately $2,537, serving as a support level, prior to moving upwards again towards its record peak.
Based on the analysis of seasoned trader Peter Brandt, there’s a possibility that the daily chart of Ether is developing a Head and Shoulders (H&S) formation. This pattern might signal an impending significant increase in price.
Furthermore, each day, the Relative Strength Index (RSI) appears to be showing a bullish trend, implying that the market momentum is being driven by the buying force.
Ethereum Whales Gradually Returns
Institutional investors’ interest in Ethereum has been growing steadily over the last few weeks, following some uncertainty in September and August. As per the most recent market statistics, US spot Ether Exchange Traded Funds (ETFs), such as BlackRock’s IBIT, have seen a total inflow of approximately $79 million since the start of this week.
Based on information from CoinGlass, there was a decrease of approximately 3 million units of Ether held on centralized trading platforms over the last day. The biggest reduction in Ether holdings took place on Binance, Kraken, and OKX exchange platforms.
As a researcher delving into the latest cryptocurrency trends, I’ve observed an intriguing surge in Ether selloffs over the last few days. These Ethers were transferred anonymously to multiple exchanges, with Coinbase Global Inc (NASDAQ: COIN) leading the way as the primary recipient.
Key Fundamentals to Consider
The Ethereum network is currently facing stiff competition from a number of up-and-coming layer one (L1) blockchains, such as Solana ($153.5), Avalanche ($27.54), Binance Smart Chain (BSC), and Tron ($0.16). Here’s a quick look at their current stats:
Key developers of Ethereum, headed by Vitalik Buterin, have been focusing on improvements aimed at making Ether more accessible without jeopardizing security, such as reducing transaction costs. The application of layer two solutions to enhance the scalability of the Ethereum network has garnered praise, but it still faces challenges related to fragmentation that hinders mainstream usage.
I need to provide an update to this thread from July.
For about six months, the Ethereum (ETH) supply was increasing by around 60,000 per month. But after the recent 50 basis points interest rate reduction, the inflation rate has decelerated to roughly between 30,000 and 40,000 per month.
If the new pace continues, it would take 3-4…
— Benjamin Cowen (@intocryptoverse) October 18, 2024
Based on insights from well-known cryptocurrency analyst Benjamin Cowen, we can expect Ethereum’s supply to decrease over the next few months, following the recent 50 basis point Fed interest rate reduction. This is because, historically, Ethereum’s supply has grown by approximately 60,000 per month, but recently there’s been a significant surge in demand for Ether, as evidenced over the past few weeks.
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2024-10-18 14:44