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Ethereum

ETH Recovers From Drop, Analyst Points At 2021 Rally

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After Monday’s drop, Ethereum (ETH) fell below key support levels and hit its lowest price since November. Nonetheless, several market watchers remain bullish, predicting a massive rally for the cryptocurrency this quarter.

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Ethereum Drops To Two Month Lows

Ethereum started the week with a significant correction, falling from the weekend range to its lowest price in two months. Over the weekend, Ethereum hovered between $3,200 and $3,340 after recovering from last week’s lows.

Amid this performance, crypto analyst Ali Martinez pointed out that ETH’s most critical resistance was between $3,360 and $3,450, where 4.37 million addresses bought 6.47 million ETH. The analyst also noted that the cryptocurrency’s key support was between the $3,066 and $3,160 price range, where 4.12 million addresses had bought 4.9 million ETH.

Ethereum tested this support zone during the December corrections, bouncing from the zone after the pullbacks. However, the king of Altcoins fell below this key support for the first time since November 9, hitting $2,920 on Monday.

After the 12% retrace from the weekend highs, ETH tested its post-election breakout level, confirming the $2,900 price range as support. Ethereum quickly bounced from this level, surging 9% to the $3,100-$3,200 range.

Crypto investor Miky Bull considers ETH’s recent performance the “perfect setup for a massive reversal.” The trader noted this could be the reversal that leads to a breakout from Ethereum’s inverse head and shoulders pattern.

The second-largest cryptocurrency by market capitalization has been forming a multi-month inverse head and shoulder pattern, as noted by several analysts, with its left shoulder formed around the $2,800 price range.

Rekt Capital had suggested that “any pullback close to the $3,000 level could see Ethereum develop a right shoulder.” Meanwhile, Miky Bull stated that the bullish setup targeted the $7,000 mark.

ETH Resembles 2021 Trajectory

Analyst Crypto Bullet pointed out that ETH’s chart resembled its 2021 behavior. The chart shows Ethereum saw a Double Top pattern during its rally over three years ago. Then, the cryptocurrency fell below the key support zone of $3,100, confirming the pattern.

ethereum
ETH’s chart resembled the 2021 ATH rally. Source: CryptoBullet on X

However, it reclaimed this level after consolidating for two weeks, which led to the breakout to ETH’s all-time high (ATH). According to the analyst, Ethereum is repeating this pattern after yesterday’s drop, suggesting that the cryptocurrency’s “worst-case scenario” would be hitting ATH levels again.

Daan Crypto Traders highlighted ETH’s historical performance during the start of the year, stating that “the percentages ETH does within its first few weeks of the year are pretty crazy.”

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CoinGlass data shows that Ethereum registered mostly negative weekly returns in the first weeks of 2024 but started a 6-week positive streak as February approached. This could suggest that ETH’s negative performance could be reversed in the coming weeks. Nonetheless, Daan advised investors to look at the quarterly returns for a better overview of seasonality.

As of this writing, ETH is trading at $3,230, a 3% increase in the daily timeframe.

Ethereum, eth, ethusdt
Ethereum’s performance in the one-week chart. Source: ETHUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com



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Ethereum

Ethereum Fee Plunges To 5-Year Low—Is This A Bottom Signal?

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On-chain data shows the Ethereum transaction fee has dropped to the lowest level in years recently. Here’s what this could mean for ETH’s price.

Ethereum Average Fees Now Valued At Just $0.168

In a new Insight post, the on-chain analytics firm Santiment has discussed the latest trend in the Average Fees of Ethereum. The “Average Fees” is a metric that, as its name suggests, keeps track of the average amount of fees that senders on the ETH network are attaching with their transactions.

This indicator’s value directly correlates to the amount of traffic that the blockchain is dealing with. The reason behind this lies in the fact that the network only has a limited capacity to handle transfers.

When the chain is busy, transfers can remain stuck in waiting until the transactions ahead of them clear out. Those who want their transactions to be processed ASAP can choose to attach a larger-than-average fee, so that the validators prioritise them.

In times of especially high traffic, this kind of competition among users can quickly drive the Average Fees up to significant levels. When there is little activity, however, senders have little incentive to pay any notable amount of fees, so the metric’s value can remain low.

It would appear that Ethereum has been witnessing the latter kind of conditions recently, as the Average Fees have registered a drop.

Ethereum Average Fees

Looks like the value of the metric has declined to a low level in recent days | Source: Santiment

As displayed in the above graph, the Ethereum Average Fees have fallen to a low of $0.168 recently, which is the lowest that it has been since 2020. This means that activity on the network is historically low at the moment.

According to the analytics firm, this may not actually be so bad from a trading perspective, as low fee periods can often precede rebounds in the cryptocurrency’s price.

Below is a chart that shows an example of this trend in action:

Ethereum Trend

The past trend in the transaction fees of ETH | Source: Santiment

As is visible in the above graph, the Ethereum Average Fees falling under the $1 mark back in 2023 led to bullish momentum for the asset. The explanation behind this pattern may lie in the fact that low-fee periods can indicate disinterest from the crowd.

Historically, ETH and other digital assets have tended to move in a way that goes contrary to the expectation of the majority. This means that a lack of optimism can lead to rebounds, while excessive hype can result in tops. From the chart, it’s apparent that ETH’s Q1 2024 top came as the metric surpassed $15, indicating a plethora of excitement.

“Generally, fee levels under $1 are a pretty promising sign that the crowd has become disinterested,” notes the analytics firm. “Just remember that there is no set guaranteed “bottom” or “top” level every time fee costs breach below or above a certain level.”

ETH Price

At the time of writing, Ethereum is trading around $1,600, up more than 1% in the last 24 hours.

Ethereum Price Chart

Looks like the price of the asset hasn't moved much recently | Source: ETHUSDT on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com

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Ethereum Investors Suffer More Losses Than Bitcoin Amid Ongoing Market Turmoil

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Given the continued volatility in the general crypto market, several major digital assets such as Ethereum and Bitcoin experienced a decrease in investor participation. As a result, the two crypto giants were faced with significant selling pressure, with ETH recording more losses than Bitcoin.

Ethereum Outpaces Bitcoin In Recent Losses

Over the last few days, Ethereum and Bitcoin have struggled with notable bearish pressure that has hampered their upward movements. During this volatile period, seasoned market expert and host of the Crypto Banter show, Kyle Doops, has outlined substantial losses in both assets as observed in the 6-Hour Rolling Losses metric.

Ethereum’s value has declined more precipitously than that of several of its competitors, triggering selling pressure among investors. During the recent sell-off, Ethereum holders have locked in $564 million in losses, highlighting growing investor caution and a shift in market sentiment. 

According to the expert, this is one of the worst losses ETH investors have experienced since the 2023 bull began. The notable losses raise concerns about ETH’s short-term resilience and future performance as volatile market conditions constantly affect investors’ confidence in the altcoin.

Kyle Doops highlighted that while losses are decreasing, this could imply that the market is adjusting to lower pricing. With the market adapting to lower price conditions, the market expert is confident that capitulation is still present.

Ethereum
ETH sees massive realized losses | Source: Kyle Doops on X

In another X post, Kyle Doops reported that Bitcoin is navigating rough waters as it suffers significant losses amid persistent market turbulence. This huge loss has also triggered speculations about the sustainability of BTC’s renewed upward trend to key levels like $85,000.

Data from the expert reveals that investors of the largest cryptocurrency asset experienced about $250 million in realized losses in just 6 hours after last week’s sharp drop. In the current market cycle, this loss is one of the biggest so far.

However, looking at the chart, each leg down is exhibiting less pain, which suggests that sellers might be running out of ammo. As key technical resistance levels continue to hinder BTC’s uptrend, the future of the flagship asset is becoming increasingly uncertain.

Where One Of ETH’s Strongest Support Lies

ETH has made a brief rebound to the $1,600 mark after a sudden drop on Wednesday. Delving into the price action, Ali Martinez, a crypto analyst, has underlined a crucial support zone for Ethereum, where significant investor interest was seen in spite of continued price fluctuation.

While the altcoin slowly rebounds, Ali Martinez highlighted that the $1,528.50 is a key support level in its price dynamics. This is due to the notable accumulation around this level. On-chain data shows that about 2.61 million wallet addresses purchased more than 4.82 million ETH in this zone, making it a robust area of support against downside pressure.

Ethereum
ETH trading at $1,602 on the 1D chart | Source: ETHUSDT on Tradingview.com

Featured image from Unsplash, chart from Tradingview.com

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Ethereum Whales Offload 143,000 ETH In One Week – More Selling Ahead?

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Ethereum is trading around the $1,600 level after several days of failed attempts to reclaim higher prices. Bulls are showing signs of life, but their momentum remains weak as bearish pressure continues to dominate the market. Despite a brief recovery bounce last week, Ethereum’s broader structure still reflects a clear downtrend.

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The crypto market remains under the shadow of macroeconomic uncertainty, as ongoing tensions between the United States and China weigh heavily on global financial sentiment. No resolution or agreement between the two economic giants has been announced, leaving investors cautious and risk-averse.

Adding to the negative sentiment, CryptoQuant data shows that Ethereum whales have offloaded approximately 143,000 ETH over the past week. This large-scale distribution reinforces fears of further downside, with long-term holders and large wallets choosing to reduce exposure rather than accumulate.

While some analysts still see potential for a turnaround if key levels are reclaimed, the current market environment remains fragile. Unless Ethereum can regain and hold above short-term resistance levels, the threat of another leg down remains very real. Traders are now closely watching price action for signs of a shift — but for now, caution continues to lead the way.

Ethereum Faces Selling Pressure As Whales Exit

Ethereum is facing a critical test as price action continues to lack clarity, and support levels remain fragile. Despite brief attempts to rebound, ETH has failed to establish a clear bottom, and the downtrend structure remains intact. The market is struggling to define a strong demand zone, making it difficult for bulls to sustain upward momentum. As selling pressure mounts, analysts are warning that Ethereum may continue to slide toward lower demand levels in the absence of strong buying interest.

Broader macroeconomic conditions continue to weigh heavily on risk assets like Ethereum. Global trade tensions, particularly the unresolved tariff standoff between the United States and China, have created uncertainty across financial markets. Combined with fears of a slowing global economy and lack of coordinated fiscal support, crypto markets remain under pressure.

Adding to the bearish sentiment, top analyst Ali Martinez shared on-chain data revealing that whales have offloaded approximately 143,000 ETH over the past week. This large-scale distribution by influential holders has significantly weakened Ethereum’s outlook, reinforcing concerns that smart money is preparing for deeper downside.

Ethereum Balance by Holder Value | Source: Ali Martinez on X
Ethereum Balance by Holder Value | Source: Ali Martinez on X

Since late December, ETH has remained in a prolonged bearish trend, with every attempt at recovery being met by renewed selling. Unless bulls reclaim key technical levels and shift market sentiment, Ethereum may continue to slide further.

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ETH Price Stuck In Volatile Range

Ethereum is currently trading at $1,600 after enduring days of massive volatility and macroeconomic-driven uncertainty. Despite brief relief bounces, ETH remains locked in a bearish structure, unable to generate sustained momentum. For bulls to regain control, reclaiming the $1,850 resistance level is critical. This level aligns with the 4-hour 200 MA and EMA around $1,800, making it a key zone to watch for confirmation of a short-term trend reversal.

ETH trading below the $1,800 level | Source: ETHUSDT chart on TradingView
ETH trading below the $1,800 level | Source: ETHUSDT chart on TradingView

Holding above these moving averages would signal renewed strength and possibly mark the beginning of a recovery rally. However, price action continues to struggle beneath them, and failure to push above these indicators would confirm persistent weakness. In that case, Ethereum may retest the $1,500 level or even dip below it if selling pressure intensifies.

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The current environment is shaped by global tensions and macro uncertainty, with no clear catalysts to drive a breakout in either direction. As long as ETH remains below its key moving averages, the risk of another leg down remains elevated. Bulls must act swiftly to flip sentiment and avoid a deeper correction toward long-term demand levels.

Featured image from Dall-E, chart from TradingView 



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