As a seasoned crypto investor with a decade of experience under my belt, I’ve seen my fair share of market volatility and trends. The current state of Ethereum (ETH) has me quite optimistic, considering its potential bottom and the anticipation of a major bull rally in the near term.
Recently, Ethereum (ETH) appears to have found a possible bottom after a prolonged bearish phase spanning several months. This could potentially trigger a significant bull run in the immediate future. After last week’s downturn, this popular large-cap altcoin, valued at approximately $277 billion when considering all outstanding shares (fully diluted), and averaging about $11 billion in daily trading volume, nearly touched the correction floor that was set during the market crash on August 5.
As a result, ETH price against the US dollar is currently retesting a crucial trendline support level, which has been forming since early 2023. A successful Ether price rebound from the current support level will outrightly lead to a rally toward its all-time high in the subsequent months.
Furthermore, the economic transition we’re experiencing is set to speed up due to the predicted Federal Reserve’s interest rate reduction on September 18 and the approaching general election. This could spark the next stage of the bull market. Also, Bitcoin‘s influence in the crypto market appears to be forming a significant reversal pattern, which may boost the rotation towards alternative cryptocurrencies (altcoins) and bring about the long-awaited altcoin season.
Ethereum Experiences Surge in Network Growth
In recent times, the Ethereum blockchain, known as the foremost platform for web3 and boasting a Total Value Locked (TVL) of over $43 billion and a stablecoins market cap exceeding $82 billion, has drawn in a larger number of users. As per data analysis from Santiment, the network has experienced significant growth, with more than 126,000 new wallets being created on Sunday alone.
On a typically quiet day like Sunday, Ethereum has achieved a four-month peak in network expansion, with an impressive 126,210 new wallets being created. This surge suggests increasing network usefulness and potential price increases around the $2,200-$2,300 range.
— Santiment (@santimentfeed) September 9, 2024
In simpler terms, as more people start using Ethereum, it’s looking optimistic for the short term. Plus, among institutional investors, Ethereum is the preferred platform for tokenization.
Furthermore, the latest authorization of Ether exchange-traded funds (ETFs) in the U.S. has noticeably strengthened Ether’s underlying attributes.
Mixed Reactions from Whale Investors
Despite growing concerns about potential cryptocurrency selloffs persisting in the last weeks of September, on-chain information indicates that some large Ethereum investors are unloading their holdings, while others remain steadfast. For example, United States Ether ETFs have now experienced four consecutive weeks with outflows of cash.
It’s worth noting that US-traded Ethereum ETFs have seen a single week of positive net investment since they were officially authorized by the U.S. Securities and Exchange Commission.
On September 7, a whale yielded to the market drop and sold approximately 28,554 ETH (worth around $64.4 million) to clear all outstanding debts on Aave. This action resulted in a loss exceeding $17 million.
This whale accumulated ~30.5K $ETH at ~$2,850 between Dec 18, 2023 and Jul 31, 2024.
— Lookonchain (@lookonchain) September 9, 2024
Based on findings from a study by Lookonchain, it appears that a large Ethereum holder (often referred to as an ‘Ether whale’) decided to cash out following the September 7 price drop. Strikingly, this whale disposed of roughly 28,554 ETH units, which equates to around $64.4 million. Interestingly, a significant portion of these funds were used to clear outstanding debts on Aave, resulting in a loss of over $17 million.
Over the past five months, I’ve observed a significant decrease in the Ethereum supply held on centralized exchanges, with more than half a million tokens withdrawn during this period.
Read More
Sorry. No data so far.
2024-09-09 13:25