Despite Ethereum’s recent decline, why ETH can still reach $4.7K

Ethereum declined by 5.41% in 24 hours as bearish market sentiment persisted.
An analyst started eyeing a new ATH of $4723.

As a seasoned researcher who has witnessed the cryptocurrency market’s rollercoaster ride over the past decade, I must admit that the recent 5.41% decline of Ethereum (ETH) within a 24-hour period does not come as a surprise. The altcoin market has been particularly volatile, and ETH seems to be bearing the brunt of these unfavorable conditions more than others.

For the last four weeks, Ethereum (ETH) has been going through a significant decline in value. While other cryptocurrencies have witnessed considerable volatility, it’s been Ethereum that’s been hit hardest by the present market situation.

Currently, Ethereum (ETH) is being exchanged for approximately $2289. This represents a decrease of 5.41% in the last 24 hours.

Previously, Ethereum (ETH) tried to move beyond its downward trend and achieved growth on a weekly basis. Yet, the daily chart losses overshadowed these gains in the recent seven days.

Amidst the current circumstances, I’ve noticed a significant uptick in Ethereum trading activities, suggesting vitality within the network. Specifically, over the past 24 hours, the trading volume has skyrocketed by approximately 81.42%, reaching an impressive $13.67 billion.

Engaging in these transactions as purchases could indicate optimism, whereas a massive sale by a ‘whale’ might signal potential risks for additional market adjustments or declines.

Despite encountering challenging periods, Ethereum (ETH) has sparked intriguing discussions among analysts due to its current state. One such analyst who has weighed in on this topic is Javon Marks, a well-known figure in the crypto community.

Although ETH is struggling, the analysts see ETH rallying to $4723.5, citing the 2023 cycle.

What prevailing market sentiment says

In his analysis, Marks cited 2023 where ETH made 165% gains to rally.

Based on his examination, the present market situation seems strikingly similar to its past cycle. If this past cycle’s conditions recur, they could potentially trigger a rise towards $4723.5.

Additionally, escaping that stage could potentially reach new record highs at around $8100, marking a significant double jump in its value.

Once Ethereum (ETH) attained the critical thresholds as indicated by analysts, it maintained a steady growth for a period of three months in succession, peaking at approximately $2717 by early January 2024. However, after this peak, ETH began to decline once more.

In general terms, the analysts’ outlook is overwhelmingly positive, suggesting that Ethereum may reach a fresh all-time high.

Is ETH ready to rally?

Without a doubt, Mark’s optimistic view could lead Ethereum (ETH) to reach an all-time high. However, the past trends he mentioned are just encouraging; the actual state of the market is what has been instrumental in ETH’s comeback.

To begin with, over the past day, a total of $46.97 million in long positions for ETH were closed out, along with $2.93 million from short positions.

Due to this significant sell-off, those who had been holding onto the belief that the market would rebound and had taken long positions were compelled to relinquish their investments.

The unwillingness of investors to pay high prices for securities and maintain their holdings implies a low level of faith they have in the future outlook.

Over the last week, there’s been a significant decrease in Ethereum being transferred from exchanges. The amount went down from approximately 679,119.6 to just 71,794.34. This drop suggests that holders are accumulating less, as fewer investors are transferring their assets off the platforms.

As an analyst, I’m observing a potential downtrend here, as the current market conditions seem to indicate that investors are more inclined towards selling, rather than making long-term investments. It appears they’re biding their time, searching for the opportune moment to offload their holdings.

Over the last several days, I’ve noticed a decrease in the Taker Buy Sell Ratio to 0.88, indicating that there has been more selling activity among investors compared to buying.

Read Ethereum’s [ETH] Price Prediction 2024–2025

To break it down simply, the present market scenario isn’t favorable for an immediate increase in prices. This is hinted at by the Taker Buy Sell Ratio, which shows that the surge in trading activity is predominantly driven by selling rather than buying.

Given the prevailing market trends, I anticipate that my Ethereum (ETH) holdings might dip towards approximately $2114 as the next level of support, prior to any potential resurgence in price growth.

2024-09-16 17:44

What prevailing market sentiment says

Is ETH ready to rally?

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