As a seasoned crypto investor with over a decade of experience under my belt, I find myself quite optimistic about Ethereum’s current standing. After navigating through the tumultuous crypto market for years, I have learned to read between the lines and interpret the subtle signs that the market often presents.
Over the past seven months, Ethereum (ETH) has been stuck in a prolonged correction period. However, it seems to have reached the highest point within this consolidation phase, suggesting an imminent bullish surge. Since the August crypto market crash, this popular large-cap altcoin, valued at approximately $292 billion and trading volumes averaging around $13.4 billion daily, has managed to recover above its 200-weekly Moving Average (MA).
Over the course of each day, the value of Ethereum relative to the U.S. dollar is getting closer to the peak of a possible symmetrical triangle structure, which often precedes a significant price movement. Alternatively, when viewing it from another angle, the daily chart shows signs of a potential reversal pattern known as inverted head and shoulders, accompanied by bullish trends on the Relative Strength Index (RSI).
Looking at its technical aspects, the cost of Ether has been testing the lower limit of an ascending trend line that started towards the end of 2022. Multiple crypto experts such as Ali Martinez predict that the next surge in Ethereum’s price growth is imminent in the short term.
#Altcoins $ETH next wave of a rally to $5k in the short term is about kick-off.
— Mikybull 🐂Crypto (@MikybullCrypto) October 9, 2024
If Ethereum fails to maintain its position above the current support level approximately at $2,300 over the short term, the optimistic outlook for the altcoin may be called into question. In this event, Ether’s price might fall below $2,000 before experiencing a recovery that could lead it toward its previous all-time high in the coming period.
Ethereum Network Registers Heightened Whale Activity
Over the past seven days, approximately 30,000 units of Ether have been deposited onto various cryptocurrency exchanges, with Coinbase Pro and Bitfinex leading the way since the August 5 crypto market downturn. This substantial increase in Ether on these platforms is primarily due to decreased interest from institutional investors, particularly US-based Ether Exchange Traded Funds (ETFs). On Tuesday alone, these ETFs experienced a net outflow of around $8 million, with Fidelity’s FETH and Bitwise’s ETHW being the main contributors.
It’s worth noting that no US-traded Ethereum ETFs saw a positive cash inflow on Tuesday. In fact, these ETFs have collectively experienced a net outflow of approximately $561 million. Experts predict this trend to persist until the Grayscale’s ETHE finds stability.
Bigger Picture
Approximately 28.9% of the total Ethereum supply is now locked into the staking program, which represents a substantial increase from the approximately 23.8% that was staked back in January 2024.
In the present context, it can be said that the Ethereum network has drawn a greater number of web3 developers relative to its contemporaries such as Solana (SOL), during the most recent period. At this point in time, the Ether network boasts approximately $44.5 billion in total value locked (TVL) and over $84.7 billion in stablecoin market capitalization.
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2024-10-09 18:15