As a seasoned researcher with over a decade of experience in the crypto space, I have witnessed the ebb and flow of countless market cycles. The current state of Ethereum, with its recent rejection at the resistance level of $2.7k, has me feeling a bit like a broken record – “here we go again.
After facing another rejection at approximately $2.7k, Ethereum (ETH) has since dipped below $2.4K in an effort to revitalize its bullish momentum. This large-cap cryptocurrency experienced a decline of around 1.8 percent over the past 24 hours, trading at about $2,394 during the midday European session on Thursday.
Looking at the technical aspects, Ethereum’s price is trying to regain its footing within the significant support zone spanning from $2,300 to $2,250 over the last two months. Additionally, the Ether value relative to Bitcoin has already created a double bottom formation and exhibits a bullish divergence on the Relative Strength Index (RSI), suggesting the approaching altcoin boom, or altseason.
Based on the analysis of well-known cryptocurrency expert Ali Martinez, it appears that Ether’s price might be shaping up as a possible symmetrical triangle configuration on the daily chart. Such patterns are known for being preceded by significant bullish price surges.
Viewed from another angle, the value of Ether relative to the U.S. dollar might be shaping up as an inverted head-and-shoulders (H&S) configuration, along with a growing disparity in the Daily Relative Strength Index (RSI).
If Ether’s price manages to surpass the resistance at approximately $2,700, it’s highly likely that we’ll witness a powerful bullish trend heading towards its previous record high. Conversely, if there’s a persistent drop below the support around $2,250, it might trigger more downfall among other altcoins in the short term.
Whenever Ethereum surpasses its TD setup resistance trendline (red), it typically triggers a robust uptrend for me as an analyst. Conversely, when Ethereum falls below the TD setup support trendline (green), historical data shows us an average correction of approximately 53%.
The key support now is $2,250—losing it could trigger a significant price drop.
— Ali (@ali_charts) October 10, 2024
China Joins Ethereum Whales in Marker Selloffs
Based on findings from OTC Research, it’s been revealed that the Chinese government is auctioning off approximately 542,000 Ethers, valued at over $1.3 billion, which they had confiscated as a result of the PlusToken scam. Over the past day, they moved 15,700 Ethers to an unidentified wallet, leading experts to suspect that these could be part of a series of sales.
Additionally, within the last 24 hours, the Chinese government transferred approximately 7k Ether to wallets linked to cryptocurrency exchanges.
Back in August, for the first time since 2021, I noticed a stirring of the dormant Ethereum (ETH) linked to the massive PlusToken scandal reappeared on the blockchain.
Within the past day, approximately 7,000 ETH out of the remaining 542,000 ETH (worth around $1.3 billion) have been transferred to exchanges, suggesting a plan to sell off the remaining tokens.
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024
Despite the Ethereum market currently handling sell-offs well, its near-term forecast will likely stay gloomy. Notably, recurring Ether sales by the Ethereum Foundation and Vitalik Buterin, coupled with a decrease in demand for US spot Ether ETFs, have been significant factors contributing to this bearish trend in recent times.
On Wednesday, U.S. Ether ETFs didn’t receive any cash influx, resulting in a total net inflow of approximately $-561 million.
Bigger Picture
Over the last few years, the Ethereum network has experienced consistent growth, largely due to significant improvements aimed at making its smart contracts easier for users. A prime example of this is Ethereum’s shift from the energy-intensive Proof-of-Work (PoW) consensus mechanism to the more efficient Proof-of-Stake (PoS). As a result, it has drawn in a larger number of participants via its staking program.
As a crypto investor, I’ve just learned from the latest market data that an impressive number of over 34.8 million Ether, which represents approximately 28.9% of the entire circulating supply, is currently being held by countless validators to uphold the network’s security.
As a result, the Ethereum network has blossomed into a thriving web3 ecosystem, boasting a total value locked (TVL) of over $44 billion and a market capitalization for stablecoins exceeding $84 billion.
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2024-10-10 13:31