Ethereum (ETH) Price Rebonds from Crucial Support Level and Aims for $2,500 But Potential Selloff Lingers

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As a seasoned crypto investor with over five years of experience under my belt, I find myself cautiously optimistic about Ethereum (ETH). The recent rebound from the crucial support level around $2,332 to trade at approximately $2,411 within 24 hours is a positive sign, and if the bullish sentiment continues over the weekend, we could potentially see ETH rally towards $2,598. However, it’s essential to keep in mind that unless Ethereum consistently closes above the crucial resistance of around $2,800 in the coming weeks, there is still a possibility of further correction.

Ethereum‘s price increased by 1.4% over the past 24 hours, rising from a significant support level near $2,332 to approximately $2,411 during the mid-London session on October 11th. This leading altcoin, boasting a market capitalization of around $290.28 billion and an average daily trading volume of about $14.54 billion, bounced back from the lower boundary of a logarithmic triangular pattern observed in the daily chart.

If bullish feelings continue throughout the weekend, it’s possible that Ethereum prices could climb towards $2,598 – this level aligns with the 0.618 daily Fibonacci Extension. Yet, unless Ethereum consistently breaks through the significant resistance of approximately $2,800 in the upcoming weeks, there’s a chance it might correct again.

From the market analysis by IntoTheBlock, it appears that Ethereum’s price has built a strong foundation of support approximately at $2,300. This is significant because around 2.4 million investors have collectively purchased about 52.6 million Ether at this level. If Ethereum’s price were to break through the $2,300 support, it could trigger a substantial sell-off across the altcoin market as investors scramble to limit their losses.

In simpler terms, for today’s market trends, pessimism (bearish sentiment) seems to be leading, aiming for a potential decrease of 12% from the current level, taking Bitcoin price down to approximately $2,100. This decline could potentially squeeze out over-leveraged traders in Ethereum. However, after this drop, there’s a chance Ethereum will bounce back towards a new record high.

Regarding the comparison between Bitcoin and Ethereum, there’s a possibility of a reversal trend emerging. This is suggested by a double bottom formation and a bullish discrepancy on the Relative Strength Index (RSI). In simpler terms, after an extended downtrend, Ethereum might be preparing to bounce back, as indicated by this technical pattern and the RSI’s optimistic signal.

Ethereum Whales Panic Sells

Previously noted by Coinspeaker, U.S. spot Ethereum ETFs have experienced low interest from institutional investors since their launch. At present, these ETFs have recorded a net outflow of approximately $560 million, with Grayscale’s ETHE leading the trend.

Currently, information from the blockchain indicates a trend of crypto whales disposing of their holdings, with the Chinese government planning to sell approximately $1.3 billion in the short term. Also, since the start of the year, the Ethereum Foundation and Vitalik Buterin have been consistently selling their coins each week.

Closer Look at Fundamental Aspects of Ether Network

Over the course of my research, I’ve witnessed a remarkable evolution in the Ethereum ecosystem, primarily driven by the widespread adoption of its smart contracts by individual traders and institutional investors alike. Notably, significant updates to the Ethereum network have enabled Ether to hold its ground against leading layer one (L1) projects such as Solana, as evidenced by their respective market metrics:

For instance, the introduction of Ethereum staking through the Beacon chain has resulted in more than 34.7 million Ether staked, representing around 28.8 percent of the total circulating supply.  The introduction of the burn feature on the Ethereum network over three years ago has resulted in more than 4.4 million Ether obliterated to date.

The Ethereum network has expanded into a dominant force in the web3 space, boasting over $44 billion in Total Value Locked (TVL) and more than $84 billion in the market capitalization of stablecoins. Notable projects within the Ethereum ecosystem include OpenSea NFT marketplace, Uniswap [UNI] ($8.05, 24h volatility: 2.3%, Market cap: $6.07 B, 24h volume: $961.44 M), and Tether USDT ($1.00, 24h volatility: 0.0%, Market cap: $119.65 B, 24h volume: $36.46 B).

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2024-10-11 14:23