Ethereum
More Pain For Ethereum? Analyst Predicts “Washout” To $2,700 Amid Regulatory Pressure
Ethereum remains under immense selling pressure, shaving over 30% from March 2024 highs. With prices recently dropping below $3,000 and sellers doubling down, there could be no reprieve for optimistic buyers in the sessions to come.
Analyst Expects One More “Washout” To $2,700
Taking to X, one analyst notes that the coin is still bearish and moving inside a falling wedge. The trader predicts that ETH will continue dropping below immediate support levels.
In a post, the trader predicts a potential “washout” for ETH that would likely see the coin fall below $2,700. The analyst added that despite the prevailing fear, the overall structure of Ethereum price action remains unchanged.
The Ethereum candlestick arrangement in the daily chart shows that Ethereum prices are within a bearish breakout formation. Following the sharp losses in mid-April, buyers have yet to unwind losses.
Accordingly, unless there is no strong push above $3,300 and the descending wedge, the odds of sellers further pressing on remain high. In the current formation, Ethereum has strong support at $2,800. If there is a “washout,” as the analyst says, ETH may fall below $2,700 towards $2,600 and $2,200, two of the immediate support levels.
Prospects Of Spot Ethereum ETFs Dimming
Adding fuel to the bearish fire are growing odds that the United States Securities and Exchange Commission (SEC) might reject the approval of spot Ethereum exchange-traded funds (ETFs) this month. This speculation stems from analysts pointing to the commission potentially classifying Ethereum as a security, derailing ETF approval.
A finance lawyer on X confirmed that the United States SEC is considering classifying ETH as a security in their upcoming spot ETF decisions. Unlike Bitcoin, whose spot and futures ETFs were approved without such scrutiny, ETH faces this additional hurdle.
Should the Gary Gensler-led commission deem ETH security, dire consequences would exist. While all spot ETF applications could be denied, there would be more. As part of Grayscale’s Ethereum trusts, ETHE, terms and conditions, if the United States SEC classifies ETH as a security, all ETHE will be liquidated, and the trust closed.
In late April, Consensys, led by Ethereum’s co-founder Joseph Lubin, said they are suing the United States SEC to protect the broader crypto ecosystem. By threatening to classify ETH as a security, ConsenSys said the regulator “would jeopardize the United States’ ability to use Ethereum and similar blockchain technology.”
Feature image from Canva, chart from TradingView
Ethereum
Ethereum Analyst Sets $3,400 Target Once ETH Breaks Key Resistance – Details
Ethereum has surged over 8% following Donald Trump’s election victory, igniting fresh optimism among investors. Despite this rally, ETH still trades below a crucial resistance level, keeping the price in check since early August.
This resistance, a critical barrier, must be cleared for Ethereum to regain its bullish momentum fully. Analysts are watching closely, with top crypto expert Inmortal sharing a recent technical analysis that suggests Ethereum could be gearing up for a significant breakout.
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According to Inmortal’s analysis, ETH appears to be building strength, and a push above this resistance could unlock the potential for a sustained rally. The market’s response to Trump’s win, particularly as he is seen as a pro-crypto candidate, has boosted sentiment, and many now anticipate increased volatility and upside for Ethereum.
Investors are now eyeing ETH’s next moves, with any break above the current resistance likely to signal the beginning of a stronger upward trend. As Ethereum inches closer to this key level, market participants are preparing for what could be a defining moment in ETH’s performance this cycle.
Ethereum Pushing Key Supply
Ethereum is pushing to break a critical resistance at $2,750, a level that has kept ETH under pressure since early August. This resistance has been a strong barrier; breaking above it is essential for confirming a sustained rally.
Top crypto analyst and investor Immortal recently shared a detailed technical analysis on X, where he outlined a $3,400 price target for ETH if it successfully clears this key resistance.
In his analysis, Inmortal emphasized that Ethereum, often dubbed the “most hated coin” in the current market, is worth paying close attention to despite its recent underperformance. Many investors have expressed frustration with ETH’s lagging momentum compared to other assets, making a breakout above $2,750 a potential game-changer for sentiment and price action.
The coming days will be pivotal as the market digests the impact of Donald Trump’s election victory and prepares for the Federal Reserve’s upcoming interest rate decision on Thursday. Trump’s win has already created bullish momentum across the crypto market, and Ethereum’s breakout could capitalize on this shift in sentiment. However, volatility may remain high, and any unexpected news from the Fed could impact ETH’s trajectory.
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If ETH can hold above $2,750 and continue pushing higher, the $3,400 target outlined by Inmortal could come within reach, marking a strong recovery phase for Ethereum. For now, the crypto community will be watching closely, as this breakout level can potentially define Ethereum’s performance in the months ahead.
ETH Technical Analysis
Ethereum is trading at $2,620 after a solid 12% surge from recent lows at $2,355. This price movement has given bulls hope that a rally may be on the horizon. However, ETH must break above the key $2,750 resistance level for the bullish momentum to continue and reclaim price action.
This level coincides with the 200-day exponential moving average (EMA), a crucial indicator of long-term strength. A breakout above this level and a successful retest would signal a market sentiment shift, confirming that ETH is on track to regain bullish control.
The 200-day EMA is often viewed as a significant support level once the price holds above it. If Ethereum manages to close above this level and maintain the price, it could spark further upside movement. On the other hand, if Ethereum fails to break above $2,750 and struggles to hold, it would signal a failed breakout.
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In such a case, ETH could face further consolidation or retrace to lower demand levels, possibly around $2,500 or even lower. Bulls must remain vigilant as the coming days will be critical for confirming Ethereum’s next move.
Featured image from Dall-E, chart from TradingView
Ethereum
Ethereum Volatility Soon? Derivatives Exchanges Receive 82,000 ETH In Deposits
On-chain data shows derivatives exchanges have just received large Ethereum deposits, something that could lead to volatility in ETH’s price.
Ethereum Exchange Netflow Has Seen A Sharp Positive Spike Recently
As explained by an analyst in a CryptoQuant Quicktake post, the Exchange Netflow for ETH has registered a large spike recently. The “Exchange Netflow” here refers to an on-chain indicator that keeps track of the net amount of ETH moving into or out of the wallets associated with centralized exchanges.
When the value of this metric is positive, it means the investors are depositing a net number of tokens to these platforms. How these transactions affect ETH depends on the exchange to which the holders are moving coins.
In the case of spot exchanges, investors usually make deposits whenever they want to sell, so positive exchange netflows to platforms of this type can lead to a bearish outcome.
For derivatives exchanges, which are relevant platforms in the current discussion, the relationship with the price doesn’t tend to be so simple. Holders transfer their coins to these exchanges to open up fresh positions on the derivatives market.
As new positions generally accompany some leverage, the overall risk in the sector could be assumed to go up when investors deposit to derivatives exchanges. This can lead to more volatility for the ETH price.
A negative Exchange Netflow is usually bullish no matter the platforms involved, as it implies the investors are moving their coins to self-custodial wallets, potentially because they plan to hold into the long term.
Now, here is a chart that shows the trend in the Ethereum Exchange Netflow for the derivatives platforms over the last few weeks:
As displayed in the above graph, the Ethereum Exchange Netflow has seen a large spike into positive territory recently, which suggests the investors have just made large net deposits to the derivatives platforms.
The holders have transferred about 82,000 ETH to these exchanges with this net inflow spree. As mentioned earlier, this trend can lead to higher volatility for ETH.
It’s hard to say which direction any emerging volatility might take the cryptocurrency in, as other positive spikes in the last couple of months have proven to be a mixed bag.
Given that the latest spike has coincided with a plunge in Ethereum’s price, though, a lot of these may be short positions predicting a further decline. If so, a swing to the upside could lead to liquidating these positions, which would add fuel to the rally.
ETH Price
At the time of writing, Ethereum is trading at around $2,400, down almost 7% over the last week.
Ethereum
Ethereum Analyst Shares Correlation With S&P500 – Last Dip Before It Hits $10,000?
Ethereum (ETH) stands at a critical turning point, with opinions split on its future performance this cycle. Some analysts argue that ETH will continue to lag, possibly underperforming against other assets like Bitcoin, which has shown strong momentum.
However, others are optimistic, believing Ethereum is poised for an aggressive rally, especially if it can establish a solid bounce from current lows.
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Renowned crypto analyst Ali Martinez has shared a compelling technical analysis, highlighting a correlation between ETH and the S&P 500. According to Martinez, this relationship could signal a substantial upward move for Ethereum, aligning with broader market trends in traditional finance.
Martinez’s analysis suggests that Ethereum could be on track for a major breakout if the current setup holds, with a target around the $10,000 mark.
As Ethereum trades near a crucial support level, the coming days will be pivotal in determining its direction. With significant upside potential, if a bullish trend takes hold, this moment may define ETH’s trajectory for the remainder of the cycle. Investors are now watching closely, weighing ETH’s next moves against crypto and traditional market cues.
Is Ethereum Preparing To Rally?
Ethereum (ETH) has been trading precariously around the $2,400 level, with recent dips below this threshold sparking concern among investors hoping for a bullish breakout. This uncertainty has heightened as traders navigate a market riddled with fear, wondering if ETH is about to embark on a long-awaited rally or fall to new lows.
Top analyst and investor Ali Martinez has provided an optimistic outlook, sharing a technical analysis on X that suggests Ethereum’s price movements closely mirror those of the S&P 500. According to Martinez, this dip could be the final one before Ethereum experiences a massive upswing, potentially tripling in value to hit the ambitious $10,000 target.
Martinez’s analysis taps into broader market sentiment, noting that ETH has shown resilience at key levels and that this correlation with the S&P 500 could indicate strength and stability shortly.
As the U.S. election results unfold and the Federal Reserve’s upcoming interest rate decision looms, the potential for volatility remains high. These factors could introduce sharp price swings, driving ETH lower temporarily before it rebounds and gains momentum for a sustained rally.
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The combination of market catalysts and Martinez’s analysis has sparked cautious optimism, suggesting that while the near-term risk is high, Ethereum could be on the verge of a significant breakout if it holds its ground through the coming turbulence.
ETH Testing Crucial Demand
Ethereum briefly dipped below the $2,400 mark, a key support level, before rebounding to $2,440. This bounce has given bulls hope, but to maintain upward momentum and challenge the prevailing bearish outlook, ETH must keep rising and target higher supply zones.
Critical to this effort will be breaking above the 200-day exponential moving average (EMA) at $2,758—a level that has consistently pushed down price action and acted as a significant resistance since early August.
If bulls succeed in reclaiming this EMA, it could mark a shift in momentum, potentially setting up ETH for a stronger bullish trend. However, if ETH fails to hold above $2,400 in the coming days, it risks a deeper retracement. Analysts have identified the $2,220 level as a crucial line of defense.
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This lower demand zone could provide the final support necessary to prevent further losses, but if breached, it would likely deepen the bearish sentiment surrounding Ethereum’s current price action. This week will be pivotal, as holding above these key levels could provide ETH with the stability it needs to stage a more aggressive push upwards.
Featured image from Dall-E, chart from TradingView
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