Key Takeaways
- Ethereum’s price sees a net capital outflow as the market struggles to build momentum following the recent market crash.
- Current bearish market sentiment continues to affect altcoins as traders and investors remain cautious despite the market rebound.
- A more realistic target for ETH remains $3,500, given the market’s decline towards $2,600.
Ethereum (ETH) has traded in a downtrend over the past few weeks, following the price crash of Bitcoin, the number one crypto asset by market capitalisation, which fell from its all-time highs of $126k towards $80k, leaving altcoins begging for survival.
With the price of altcoins suffering a major market decline, bears have pushed the price towards weekly and monthly support zones, respectively, as this market crash has been ongoing for weeks now, following a strong rally to the upside.
The price of BTC crashing towards $80k has affected the general market sentiment, as this has affected investor and whale activities negatively in the last few weeks, including the prices of many altcoins. With the price of Ethereum trading into a key zone of $2,600, speculation of a possible price crash to a lower region, potentially $2,000, has gained more attention.
The price of ETH trading below $3,000 has been attributed to net capital outflow from its ecosystem and exchanges based on on-chain data. This has resulted in fears and uncertainties among traders and investors despite speculations of BTC seeing a market rally toward $107k. Could the price of ETH follow BTC towards such highs?
Ethereum’s Price See Net Capital Change
According to on-chain data from Glassnode, an analytical platform, the crypto asset, including stablecoins, is at a net negative capital outflow, suggesting the market currently lacks buyers from whales and institutions, as this could affect the price of ETH to the downside despite showing a glimpse of market bounce.
The sentiment around the cryptocurrency market is bearish, as the BTC Fear & Greed Index is currently in the 10 zone for the first time in months, suggesting heightened uncertainty. However, times like this usually give rise to a market rebound to the upside, which traders would be on the lookout for.
Where could the price of ETH be headed in the coming days?
ETH Short-term Price Prediction
Source – Ethereum 1D Price Analysis from TradingView
ETH’s price has shown strong momentum in the last few hours, trading around $2,600, as it has rebounded from its key weekly demand zone towards a high of $2,900, offering hope for traders and investors.
However, traders and investors need to tread cautiously as this price rebound could be a short-term price rally for the crypto asset ahead of its yearly close. Many crypto experts have speculated on a rally towards $3,500, which could be followed by a bearish decline.
A clear bullish price action on the higher timeframe could confirm a strong price gain toward a potential region of $4,000, restoring market hope for trading the crypto asset. Overall, the market would aim for $3,500, which is more realistic given the recent market downturn.
FAQs
Will Ethereum reach $10,000?
The possibility of the crypto asset reaching $10,000 before the year ends seems unlikely, as the price has struggled over the last few weeks.
What is the future of Ethereum?
ETH has a future, as many crypto projects would be built on its network, leveraging its security to develop a sustainable system that could provide improved payment solutions.
Should I hold or sell Ethereum?
The decision to hold or sell ETH depends on individuals, as the crypto asset’s price is volatile under different market conditions.
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