As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I can confidently say that the recent downturn in Ethereum’s price has been intriguing, to say the least. The last 30 days have seen ETH plunge by more than 20%, a stark reminder of the rollercoaster ride that is crypto trading.
Recently, Ethereum has experienced some significant ups and downs. Its digital currency plunged sharply, reaching a level where one ETH was traded for approximately $2,550. Over the past month, it has lost over 20% of its worth.
Although there was a significant sell-off, experts at Cryptorphic predict that Ethereum’s price outlook remains optimistic. They suggest that Ethereum might bounce back due to crucial support levels, potentially leading to a bullish trend.
Several significant factors have contributed to this downturn, particularly over the past few weeks. As reported by a prominent blockchain analysis platform, Spot On Chain, these four key aspects seem to be driving this pattern.
According to available data, significant contributors like the Ethereum Foundation, Jump Trading, and two large Ether holders collectively sold around 197,800 ETH valued at roughly $599 million. This massive sale could have played a role in driving up the price of Ether.
$ETH has painfully plunged twice in the past month (23.5%).
In my analysis, I’ve identified four significant factors that appear to have driven the recent sale of approximately $197.8K worth of ETH (equivalent to around $599 million). These elements seem to have played a role in the subsequent price drops we’ve observed.
• The Ethereum Foundation:
– sold 35.4K $ETH ($95M)
– still holds 275K $ETH ($677M)
• Jump…
— Spot On Chain (@spotonchain) August 28, 2024
Whale Activity Adds To Market Downturn
In this context, Jump Trading stands out as the key contributor, transferring approximately 88,900 ETH valued at around $276 million to centralized exchanges between July 25th and August 6th. This action was proactive, as the price of ETH plummeted by about 20% on August 5th.
0xe17, a significant player in ICOs, has been intensifying selling pressure since July 9. This whale has been transferring substantial quantities of Ethereum (ETH) to various exchanges. One of his notable actions was depositing 48,500 ETH onto the OKX exchange, with approximately 38,500 ETH being deposited in the month preceding the first significant price drop on August 5.
Additionally, another significant whale, identified as “0x682,” has been implicated in allegations that it contributed to the market’s downward trend. On two separate instances, this entity moved a substantial amount of 25,000 ETH, equivalent to approximately $73.9 million, to the Kraken exchange. Remarkably, these transfers occurred prior to the observed price declines, potentially exacerbating the market’s drop.
Bullish Signals Amidst The Bearish Trend
Despite some challenging periods, certain experts continue to express great optimism about Ethereum’s future. Cryptorphic recently put forth a positive outlook for Ethereum, stating that the primary cryptocurrency possesses a significant level of support situated between $2,184 and $2,348. Remarkably, this range has demonstrated robustness, as ETH managed to recover it following a significant market dip.
Currently, as per Cryptorphic, Ethereum is being traded around $2,559, which is near the point of challenging the significant resistance level represented by the 35-day Exponential Moving Average (EMA). This level holds a crucial position for Ethereum in its current market context.
ETH Technical Analysis in a 2-Day Timeframe
Currently, Ethereum (ETH) appears to be finding solid footing between approximately $2,184 and $2,348. Just recently, during a significant market downturn, Ethereum dipped to the exact same level and then rebounded.
With the price currently at $2,520, ETH is likely…
— Cryptorphic (@Cryptorphic1) August 28, 2024
Should Ether (ETH) surpass its current significant barrier, it might suggest a possible rise aiming at challenging a higher resistance at approximately $3,750. This prediction provides a glimmer of optimism for traders who are bullish on Ethereum’s future prospects.
Ethereum: RSI Points To A Possible Reversal
Technical indicators offer a glimmer of optimism. For instance, the Relative Strength Index (RSI), a popular momentum indicator, is retreating from the oversold zone, potentially implying that the bearish trend might be losing momentum, and the bullish sentiment could regain traction.
The change in pace could potentially pave the way for a more rapid increase in value, particularly if Ethereum manages to surpass significant barriers of resistance.
Now, we’ll focus on crucial support levels ranging from $2,184 to $2,348. This region has played a significant role in halting any additional price drops thus far. If bulls regain control, potential resistance points could be seen at $2,930, with additional resistance targets at $3,750. At the moment, Ethereum is teetering at a critical juncture, indicating either a robust recovery or further periods of consolidation.
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2024-08-30 20:11