Ethereum News – Ethereum Faces Short-Term Setbacks but Shows Potential for Future Gains
Ethereum News – On August 5, Ethereum (ETH) dropped to $2,111, marking the first time it tested this level since January 3. This decline resulted in Ether giving up 98% of its 2024 gains. Additionally, ETH’s performance against Bitcoin (BTC) has been weak, with the ETH/BTC trading pair hitting a 1,211-day low. Despite the recent sell-off, Ethereum ETF inflows experienced a minor negative net flow of $2.9 million on August 8, following over $150 million in positive inflows right after Monday’s market turmoil. The total net flow remains negative at $390 million as of the latest update.
Ethereum’s Recovery and Market Sentiment
Ethereum has rebounded by 27% since its Monday low of $2,111, driven largely by the broader market recovery. Bitcoin experienced a notable 12% rally in the past 24 hours, and Ether has mirrored this upward movement. Both assets currently show a correlation index of 0.82 over a 90-day period, indicating a strong alignment in their price movements. Santiment, an analytics platform, has noted that the market’s focus has shifted to Bitcoin and Ethereum following Monday’s sharp decline. Ethereum, in particular, appears to be seen as a buying opportunity, as evidenced by recent increases in ETH addresses.
Accumulation Trends in Ethereum Addresses
According to an on-chain data aggregator, addresses with ETH balances between 10 and 10,000 ETH, and between 10,000 and 100,000 ETH, have been gradually increasing their holdings since July. Notably, following the recent lows, large addresses have absorbed significant amounts of ETH. Addresses holding between 10 and 10,000 ETH added 530,000 ETH, while those with balances between 10,000 and 100,000 ETH acquired approximately 227,000 ETH post-August 5.
Analysts’ Perspectives on Ethereum’s Short-Term Outlook
Despite Ethereum’s swift recovery from recent lows, it is anticipated that the altcoin may consolidate sideways over the coming weeks. CrediBULL Crypto, a well-known crypto trader, predicts that Ethereum might experience “one more marginal lower low,” potentially retesting support at $2,111. He cites Ethereum’s relative weakness against Bitcoin as a primary factor. A slight correction in Bitcoin could lead to a more pronounced decline in Ethereum. Conversely, CryptoPoseidonn, another popular crypto trader, views this scenario as an opportunity. He suggested on X.com, “The market will bottom in the green and will offer several chances to buy $ETH over the next 2 months.”
Technical Indicators and Resistance Levels
Despite the recent recovery, Ethereum’s daily chart appears bearish. The ETH price has fallen below its long-term bullish trendline, which has been in place since October 2023. Additionally, Ether has dropped below the 100-day and 200-day exponential moving averages (EMAs), indicated by the blue and orange lines, respectively. Consequently, ETH/USDT may face resistance between $2,850 and $2,700, levels that previously served as support in 2024.
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