Ethereum (ETH) Price Signals Midterm Bearish Outlook amid Heightened Whale Buying Pressure

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As a researcher with a background in financial markets and crypto analysis, I find the recent price action of Ethereum (ETH) concerning despite the approval of spot Ether ETFs in the United States and Hong Kong. The bearish outlook from the past two weeks could continue into this week, especially with high-impact news from the Federal Reserve and the Consumer Price Index (CPI) expected to cause increased volatility in the crypto industry.

The price of Ethereum (ETH) has had a tough time surpassing the $4,000 mark, despite the recent green light given to spot Ether Exchange-Traded Funds (ETFs) in the US and Hong Kong. The previous two weeks have seen Ethereum closing bearishly, which may influence its performance this week as well. As for Bitcoin (BTC), it dipped below $70,000 on Monday, encountering significant resistance around $72,000.

This week, the entire altcoin market started off on a bearish note due to significant news emanating from the United States. Specifically, on Wednesday, the US Federal Reserve is set to announce its latest decision regarding interest rates, which has been eagerly awaited.

As a researcher, I’ve noticed an interesting development in global monetary policy. While some market economists predict that the Federal Reserve will maintain its current interest rates, the European Central Bank (ECB) has already taken action by reducing its own rates from 4% to 3.75%. Furthermore, the Bank of Canada has initiated rate cuts as well. These moves put pressure on the Federal Reserve to consider a similar direction in order to keep pace with their global counterparts.

On Wednesday, the US Bureau of Labor Statistics is set to publish important figures regarding the Consumer Price Index (CPI). This data release could bring about substantial repercussions for the crypto industry, potentially leading to heightened market fluctuations.

Ethereum Whales on the Move

Based on Glassnode’s on-chain analysis, there has been a 3% rise in the number of Ethereum addresses holding over 10,000 Ether units in the past three weeks. Moreover, the Ethereum supply on centralized exchanges currently stands at its lowest point in eight years. This trend indicates that investors are steadily amassing large quantities of Ethereum for long-term storage.

As a crypto investor, I’ve noticed an intriguing development in the Ethereum network. Specifically, there’s been a 3% surge in the number of Ethereum addresses holding more than 10,000 dollars worth of ETH over the past three weeks. This uptick suggests significant buying pressure and could be an early indicator of potential price growth.
— Ali (@ali_charts) June 9, 2024

After the approval and listing of spot Ethereum exchange-traded funds (ETFs) in the US, the Ethereum market’s supply-demand imbalance is expected to become even more pronounced. Notably, BlackRock has revealed a larger $10 million seed investment for its Ethereum ETF compared to its Bitcoin ETF’s initial investment.

Investors who have purchased Ethereum are optimistic about a potential price surge in the near future. This confidence stems from the historical pattern of crypto markets, specifically the four-year bull cycle that was signaled by Bitcoin’s halving event. Furthermore, Ethereum’s network is undergoing significant improvements to better support the widespread adoption of Web3 technology. These advancements aim to decrease transaction fees and enhance the platform’s processing capacity.

Midterm Ether Target

As a researcher studying the cryptocurrency market, I’ve observed that Ethereum’s price has generally followed Bitcoin’s trends, with only a few exceptions. Notably, crypto analyst Crypto Patel, who is well-known in various social media circles, suggests that for Ethereum to nullify any further correction towards $3,152 against the US dollar, it must hold its ground above the support level of approximately $3,650.

As a researcher studying Ethereum’s price action, I observe that ETHUSDT is presently moving within the boundaries of a potential bull flag or parallel channel formation on the chart. I’m keeping an eye out for a clear break beyond these boundaries before considering making any trades.
If the price of Ethereum (ETH) falls below its current support at $3650, it could lead to a potential drop in value, possibly reaching as low as $3152 – a level previously tested.
— Crypto Patel (@CryptoPatel) June 10, 2024

If the Ether price relative to the US dollar slips below the support at around $3,650 and falls to approximately $3,150, Crypto Patel predicted that the altcoin would surge past $4,000 en route to mid-term objectives between $6,000 and $7,000.

From a researcher’s perspective, I would express it as: The current trend indicates that Ethereum’s price will experience exponential growth in the upcoming quarters, driven primarily by increased network utilization. At present, the Ethereum network boasts a total value locked exceeding $64 billion and a stablecoins market capitalization approximating $80 billion.

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2024-06-10 13:03