Ethereum (ETH), the world’s second-largest cryptocurrency, continues to grapple with uncertainty following a sharp price decline. Investors are in a bind, with whales leaving positions and market sentiment swinging between fear and glimmers of hope.
Ethereum price is struggling to regain ground.
Ethereum price has been on a roller coaster ride in recent months. After reaching new records in late 2021, cryptocurrency prices plummeted, rattling investors. The recovery is slow and Ethereum is currently hovering around $3,077, far from its all-time high.
Source: Coingecko
This lackluster performance is causing anxiety among investors, especially large holders known as whales. According to recent data from Lookonchain, a whale that bought ETH a year ago cashed out and pocketed a whopping $16 million in profits. The whale’s actions could highlight a potential departure of major investors, pushing prices further down.
Fear is gripping Ethereum whales.
WhaleStats, a platform that tracks large cryptocurrency holders, shows that Ethereum whales are experiencing intense fear. The BSC chain Ethereum Whale’s Fear and Greed Index, which measures investor sentiment, is currently in ‘extreme fear’ territory. This suggests that whales are holding back from making significant moves, waiting for markets to stabilize before deploying capital.
Source: WhaleStats
Ethereum remains the most popular token among whales, but their concerns are clear. They closely monitor market movements and wait for clear signals before taking the plunge.
Opinions are divided about the future of Ethereum.
The future of Ethereum is still a matter of debate among cryptocurrency analysts. Ashcrypto, a prominent analyst, believes that a rebound is likely in the third quarter of this year. Ashcrypto predicts the price to surge to $4,000 based on historical patterns in 2020 and 2021.
Ethereum price update
– Fractal similar to Q4 2020
– Based on historical patterns, a breakthrough could occur in the third quarter of 2024.
Once that happens, the 100x altseason will begin as ETH heads towards $15,000. pic.twitter.com/F1Zr6mQeHB
— Ash Crypto (@Ashcryptoreal) May 6, 2024
Data from IntoTheBlock shows a strong correlation between Ethereum price and large trading volume. The recent decline in large transactions coincides with a decline in price, suggesting that whales play a significant role in influencing Ethereum’s trajectory.
Total crypto market cap currently at $2.28 trillion. Chart: TradingView
ETH price trends at a glance
Meanwhile, with the next target of $3,090, Ethereum is expected to continue its bearish trend correction, and a drop below $3,120 once again is expected to further deepen its bearish bias.
If the price breaks above $3,100, it will stop the expected downtrend and try to regain the main positive trend. A move below EMA50 would support the continuation of the recommended negative wave.
Is Ethereum heading for a revival?
The answer is unclear. Some analysts are predicting a whale resurgence, but continued whale selling and volatile market sentiment are creating serious challenges. The coming months will be critical for Ethereum as it navigates volatile markets and restores investor confidence.
Featured image from Hakai Magazine, chart from TradingView
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