Analysts warn of a plunge to $2,000.
Since Ethereum (ETH) reached a high of $2,717 over the past two weeks, the asset has experienced a gradual decline, reaching a key demand area that could soon play a significant role in determining the price trajectory, according to a prominent cryptocurrency analyst. I did it.
Critical support areas indicate continued bearish movement.
Ali, a famous cryptocurrency analyst, pinpointed An important demand zone for ETH between $2,388 and $2,460. The resilience of this support level could pave the way for an upward trajectory, giving Ethereum a much-needed break from bearish pressure.
However, if Ethereum falters, a bearish pullback to the next major support level around $2,000 could be imminent. The decline represents a decline of nearly 20% from the current price near $2,300, representing a severe test of the upside stability of the Ethereum market.
#Ethereum Market updates: $ETH It is currently in a key demand area between $2,388 and $2,460. If this support remains strong, there is a clear path to the upside with minimal resistance.
⚠️ But what if #ETH If we don’t maintain this level, we… pic.twitter.com/F0HfyrSdGF
— Ali (@ali_charts) January 21, 2024
In the last 24 hours, Ethereum has lost a noticeable 4.3% in value, breaching a critical demand area for Ali. ETH is currently trading at $2,368, signaling the possibility of a further plunge from here.
This price drop is reflected in Ethereum’s trading volume, which has dropped significantly from $19 billion last Monday to $10 billion today, indicating reduced trading activity and a shift in investor sentiment.
Ethereum Market Dynamics: Whale Buying Declines and Dominance Rises
The current market decline has not gone unnoticed by savvy investors. According to cryptocurrency analytics platform Lookonchain, a prominent Ethereum whale took advantage of this opportunity and acquired 3,600 ETH, worth about $8.9 million.
After the price $ETH It ran out today, this smart whale bought 3,600. $ETH($8.9 million) was back at a lower price 5 hours ago.
This whale is very good at shopping $ETH We sell it at a low price $ETH At the best.
Current revenue is ~$25.8M! https://t.co/UzXbheftr1 pic.twitter.com/DannZzsQVk
— Lookonchain (@lookonchain) January 19, 2024
This strategic move is part of a larger pattern of buying low and selling high seen in the history of whale trading. The estimated revenue from this strategy is said to be $25.8 million.
Amid this weakness, Ethereum has shown resilience in terms of market power. According to a recent report by analytics firm Santiment, Ethereum’s market share relative to the overall cryptocurrency market capitalization surged by approximately 22.4% in just one week.
This growth is complemented by a significant increase in active Ethereum addresses, with an average of 89,400 new addresses joining the network each day, reaching 96,300 new addresses per day.
These numbers suggest that interest and participation in the Ethereum ecosystem is growing despite current market conditions.
📈 #Ethereum‘s price power continues to rise. #BitcoinNow it’s +22.4% in one week. There were 89.4K new items during this period. $ETH There are 96,300 addresses created per day and 96,300 wallets just yesterday. Additionally, the supply of the asset with the second largest market capitalization is
(Continued) 👇 pic.twitter.com/9nHC6PJPy
— Santiment (@santimentfeed) January 16, 2024
Featured image by Unsplash, chart by TradingView
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