Ethereum (ETH), the world’s second largest cryptocurrency, continues to struggle with uncertainty after a steep price drop. Investors are in panic, the whales are exiting their positions and market sentiment is teetering between fear and a glimmer of hope.
Ethereum price struggles to regain its footing
The price of Ethereum has been on a roller coaster these past few months. After reaching new highs in late 2021, the cryptocurrency plummeted dramatically, leaving investors reeling. The recovery has been slow, with Ethereum currently hovering around $3,077 – a far cry from its peak.
Source: Coingecko
This lackluster performance is causing concern among investors, especially large investors, also known as whales. Recent data from Lookonchain paints a worrying picture: a whale that bought ETH a year ago is making money, raking in a tidy $16 million in profits. This whale’s actions highlight a potential exodus of major investors, which could further depress the price.
Fear grips Ethereum whales
WhaleStats, a platform that tracks major cryptocurrency holders, reveals that Ethereum whales are experiencing extreme anxiety. BSC Chain Ethereum Whales’ Fear and Greed Index, a measure of investor sentiment, is currently in the ‘extreme fear’ zone. This suggests that whales are reluctant to make any significant moves and are waiting for the market to stabilize before deploying their capital.
Source: WhaleStats
While Ethereum remains the most popular token among whales, their concern is palpable. They closely monitor market movements and wait for a clear signal before taking the plunge.
Divided opinions about the future of ether
The future of Ethereum remains a topic of discussion among crypto analysts. Ashcrypto, a leading analyst, believes in a potential recovery in the third quarter of this year. Based on historical patterns from 2020 and 2021, Ashcrypto predicts a price increase towards $4,000.
ETHEREUM PRICE UPDATE
– Similar fractal from the fourth quarter of 2020
– An outbreak could occur in the third quarter of 2024 according to the historical pattern
Once it breaks out, the 100x altseason will begin, with ETH heading towards $15,000. pic.twitter.com/F1Zr6mQeHB
— Ash Crypto (@Ashcryptoreal) May 6, 2024
Data from IntoTheBlock shows a strong correlation between Ethereum price and high transaction volume. The recent drop in the number of large transactions coincides with the price drop, indicating that whales play a crucial role in influencing Ethereum’s trajectory.
Total crypto market cap currently at $2.28 trillion. Chart: TradingView
ETH price action at a glance
Meanwhile, Ether, with its next target at $3,090, is expected to continue its corrective bearish trend, demonstrating a further bearish bias when it falls below $3,120 again.
If the price breaks through $3,100, it will stop the expected decline and try to regain the main positive trend. A move below the EMA50 would support the continuation of the recommended negative wave.
Is Ethereum headed for a revival?
The answer remains unclear. While some analysts predict a rebound, continued whale sales and fearful market sentiment pose significant challenges. The coming months will be crucial for Ethereum as it navigates a volatile market and tries to regain investor confidence.
Featured image from Hakai Magazine, chart from TradingView
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