Ethereum
Ethereum’s Rally Loses Steam: Analyst Foresee A Possible Brief Correction
Negative sentiment is gradually growing in the general crypto market once again, with major digital assets like Ethereum, the second-largest cryptocurrency, witnessing a notable setback that led to a slowdown of its renewed upside price momentum. Due to the sudden drop, several crypto analysts believe that the altcoin could face an extended bearish movement shortly.
Ethereum Set To Enter A Correction Phase
IC News, an informative platform has delved into Ethereum’s current price action, offering an insightful perspective about its performance in the near term. After a thorough examination, the platform highlighted that ETH might be on the brink of a temporary corrective phase as market momentum cools off following recent gains. The platform’s prediction is due to signs of overbought conditions and profit-taking by retail and institutional investors, which could affect the stability of the crypto asset’s value.
According to IC News, Ethereum is currently getting close to a critical resistance area at the $3,600 price level, where there is a lot of supply and room for profit-taking. Given how robust this resistance level is, the platform claims there is a good chance that a brief period of correction could occur soon to limit buying pressure.
Furthermore, IC News points out that in order to create a more stable uptrend for Ethereum, the market will have to fall back toward the 200-day Moving Average (MA).
While the analysis might spark worries about the altcoin‘s short-term trajectory, the pullback may turn out to be healthy for the asset. This is because the altcoin may create new strong support levels during the correction phase and fortify its base for future price expansion. It could also present several buy signals and opportunities for new and seasoned investors, allowing them to reassess their positions in light of waning market sentiment.
Despite the sudden price decline, the digital asset persistently demonstrates bullish potential in the broader outlook, with market expert and trader, Captain Faibik predicting a mid-term price target for Ethereum at the $5,450 level.
Thus far, Ethereum continues to move within the Broadening Wedge pattern, a key indication of rising momentum. Meanwhile, Captain Faibik anticipates a breakout from the bullish formation in the coming days, which will trigger another huge rally for ETH, potentially to $5,450 in the mid-term.
ETH Now Ahead Of America’s Banking Giant
Ethereum’s recent upswing has led the altcoin to crucial milestones in the last few days, such as surpassing financial behemoth Bank of America by market capitalization. On Sunday, ETH saw a surge in its overall market cap by over 5%, bringing it to a total of $383 billion and breaking past the market cap of Bank of America by a whopping $40 billion.
IC News stated that the crypto asset’s high valuation in comparison to Bank of America reflects a change in the dynamics of the traditional sector as blockchain technology adoption and growth start to outpace traditional banking systems.
Featured image from Unsplash, chart from Tradingview.com
Ethereum
Ethereum Consolidation Continues – Charts Signal Potential Breakout
Ethereum (ETH) has consolidated since November 12, when it hit a local high of $4,446. Despite Bitcoin’s impressive rally capturing market attention, Ethereum has struggled to maintain upward momentum and reclaim its yearly highs. The price action reflects a period of indecision, as ETH faces challenges in breaking through significant resistance levels that could reignite bullish sentiment.
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While Ethereum lags behind Bitcoin in performance, analysts remain optimistic about its potential for a breakout. Notably, Carl Runefelt, a prominent crypto analyst, recently shared a technical analysis suggesting that ETH is on the verge of a major move.
According to Runefelt, Ethereum must push above a key resistance level to trigger a breakout and rejoin the broader market’s bullish trend.
As the second-largest cryptocurrency by market cap, Ethereum’s next steps will be crucial for traders and investors watching the market closely. A breakout above resistance could signal the start of a new upward phase, while continued consolidation might test the patience of market participants. With technical signals aligning and speculation building, Ethereum’s price action in the coming days will likely set the tone for its performance in the weeks ahead.
Ethereum Prepares To Surge
Ethereum has been underwhelming in its price action since March, struggling to keep pace with Bitcoin’s performance. Despite a few notable surges, ETH has yet to achieve the breakout investors eagerly anticipate.
Related Reading: Solana Analyst Expects A Retrace Before It Breaks ATH – Targets Revealed
The prolonged consolidation has frustrated some traders, but an optimistic sentiment remains among those who believe Ethereum is poised for a significant rally once it clears key supply levels.
Top crypto analyst Carl Runefelt recently shared his technical analysis on X, highlighting Ethereum’s current position within a bullish flag pattern. According to Runefelt, ETH has attempted to break out of this formation for the past two weeks, facing stiff resistance at critical supply zones. However, he remains confident that it could rapidly surge to $4,150 once Ethereum breaches this level.
Such a move would mark a substantial percentage increase from current prices, sparking a wave of investor enthusiasm. The fear of missing out (FOMO) could drive additional buying momentum, creating a self-reinforcing price appreciation cycle. If ETH follows this trajectory, it would confirm the bullish flag breakout and signal Ethereum’s return to a dominant position in the crypto market.
ETH Price Action: Technical Details
Ethereum is trading at $3,120 following several days of sideways consolidation below its recent local high of $3,446. Despite the pause in upward momentum, ETH has shown strength by surging above the critical 200-day moving average (MA), currently at $2,957, and maintaining its position above this key technical indicator.
The 200-day MA is often a pivotal line between bullish and bearish trends. Ethereum’s ability to stay above it signals robust support from buyers and growing confidence in the market. If ETH continues to hold this level, it could pave the way for a bullish surge, with the first target being the local top at $3,446.
Beyond that, a break above this resistance level could see ETH aiming for yearly highs near $4,000, reigniting enthusiasm among traders and investors. Such a move would likely confirm Ethereum’s return to a sustained uptrend, aligning it more closely with Bitcoin’s recent bullish performance.
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However, losing the 200-day MA as support could introduce risks of a pullback, potentially sending ETH to retest lower levels. Ethereum’s price action remains strong, with the market eagerly watching for the next significant move.
Featured image from Dall-E, chart from TradingView
Ethereum
Ethereum Holders Endure Unrealized Losses – Is ETH Undervalued?
Ethereum (ETH) has been underperforming in this cycle, trailing far behind Bitcoin’s impressive rally to new all-time highs. While Bitcoin captures headlines with its continued surge, ETH struggles to reclaim its yearly highs, leaving many investors questioning its next move.
Despite the lackluster price action, data from CryptoQuant CEO Ki Young Ju reveals a silver lining for ETH holders. According to Ju, many ETH investors are enduring unrealized losses, reminiscent of ETH’s early 2020 bottom before its explosive bull run. This suggests that the current market conditions might offer a unique opportunity for long-term ETH investors.
Ju’s analysis highlights that substantial price recoveries have historically followed such phases of unrealized losses. If Ethereum starts to gain momentum and close the gap with Bitcoin, the potential gains could be massive. For investors, this could mark the beginning of an upward trend, rewarding those who remain patient during this period of consolidation.
With market sentiment shifting and historical data supporting a bullish case, ETH’s next move could be pivotal. Investors and analysts closely watch ETH’s price action, hoping for signs of a breakout that could reignite its momentum and deliver significant returns.
Last Chance To Buy Ethereum?
Despite Ethereum’s underwhelming performance this cycle, there are signs of bullish price action in recent weeks. ETH has remained relatively stagnant compared to Bitcoin’s meteoric rise. However, optimistic signals suggest this could be the last opportunity to accumulate ETH at discounted prices before it starts its ascent toward new highs.
Critical data from CryptoQuant CEO Ki Young Ju sheds light on an interesting development: the ETH-BTC NUPL (Net Unrealized Profit/Loss) has reached a 4-year low. This indicates that, despite Ethereum’s lagging performance against Bitcoin, many ETH holders are enduring unrealized losses.
This mirrors Ethereum’s early 2020 bottom situation, just before it began its explosive rally. Ju believes that this period of underperformance might present an opportunity for long-term ETH investors, as it could set the stage for a potential surge.
However, Ju also notes that Ethereum’s future heavily depends on the revenue generated by Web3 applications, particularly through stablecoins. While the ecosystem remains promising, it also feels heavily leveraged, and the issue of sustainable growth through Web3 app revenue doesn’t seem likely to resolve anytime soon.
Over a one-year timeframe, Ju finds ETH less appealing than BTC, although regulatory clarity in the future could change the dynamics and enhance Ethereum’s appeal. For now, this period of consolidation presents a critical moment for ETH believers to position themselves before any significant price movements.
ETH Testing Crucial Demand
Ethereum is testing crucial demand above the $3,000 level, trading at $3,120 after several days of sideways consolidation below its local high at $3,446. This consolidation suggests that ETH is preparing for a potential breakout, especially with its recent surge above the key 200-day moving average at $2,957. Holding above this key support level is critical for maintaining bullish momentum.
If Ethereum stays above the 200-day moving average and continues its upward trajectory, the next major resistance zone will be the local high at $3,446. A successful breakout above this level could pave the way for ETH to challenge its yearly highs, potentially reaching the $4,000 mark.
The current price action indicates a solid demand foundation above $3,000, and if ETH can maintain this level, it could trigger a bullish surge. However, failure to hold above the 200-day moving average could lead to a retest of lower support levels, such as $2,900 or even $2,500.
As of now, ETH remains poised for a potential move higher, and traders are watching closely for confirmation of a breakout to new highs.
Featured image from Dall-E, chart from TradingView
Ethereum
Is Ethereum Undervalued? Investors Hold Firm While Price Targets Rise
Ethereum has experienced a noticeable surge in its price recently, trading above the psychological $3,000 price mark, which has reignited interest in the crypto market. According to on-chain analysis, retail investors appear to be adopting a “hold” strategy, resisting the urge to sell despite the increase in ETH’s value.
Market analysts view This holding behavior as significant, especially considering the broader market sentiment influenced by the so-called “Trump Trade,” which has contributed to easing risks and enhancing market conditions.
Limited Ethereum Deposits To Exchanges
According to the onatt, the CryptoQuant analyst behind the analysis, this trend of holding ETH without significant profit-taking suggests that many investors still perceive the cryptocurrency as “undervalued,” even at its elevated levels.
Another factor onatt mentioned supporting this observation is the limited inflow of ETH to major exchange deposit addresses such as Binance and OKX, indicating that traders are not moving their assets to sell.
Generally, large volumes of ETH flow into exchanges typically signal impending selling pressure. However, this has not been the case, reflecting a cautious but optimistic outlook among retail market participants.
Key Metric Highlighting Investor Sentiment
Another major metric the CryptoQuant analyst highlighted reinforcing this “hold” sentiment is the Spent Output Profit Ratio (SOPR), which tracks the profitability of spent coins.
onatt reveals that this metric remains close to 1, indicating that most Ethereum transactions are happening near breakeven levels. This data indicates a lack of significant profit realization among ETH holders, highlighting a strong “buy and hold” sentiment.
According to the analyst, when paired with low exchange inflows, this metric also suggests that investors are maintaining confidence in Ethereum’s long-term growth potential.
Furthermore, onatt’s analysis suggests that as long as ETH maintains levels above $2,800, it could pave the way for a swift move toward the $4,000 range.
So far, Ethereum is currently still trading above just above $3,000. While the asset’s price increase is nowhere near that of BTC, it has managed to maintain stability above the crucial psychological price level.
At the time of writing, ETH has surged by 0.2% in the past day with a current trading price of $3,100—a price mark that brings Ethereum a 36.4% decrease away from its all-time high (ATH) of $4,878 registered in 2021.
Analysts have suggested that the current market price of ETH is a notable buying opportunity for the asset. A crypto enthusiast known as venturefounder has particualry predicted a “conservative” $10k-$13k price target for ETH.
$ETH: road to $13k
This could be a transformative cycle for #Ethereum.
$10k-$13k is conservative. pic.twitter.com/q3Er9EG9gS
— venturefounder (@venturefounder) November 19, 2024
Featured image created with DALL-E, Chart from TradingView
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