May 23, 2024
Ethereum (ETH)

Since Ethereum (ETH) peaked at $2,717 in the last two weeks, the asset has experienced a gradual decline, culminating in its arrival at a key demand zone, which could be instrumental in determining its imminent price trajectory, according to a prominent crypto analyst.

Critical Support Zone Flags Continuous Bearish Move

Renowned crypto analyst Ali has pinpointed a critical demand zone for ETH, ranging between $2,388 and $2,460. The resilience of this support level could pave the way for an upward trajectory, offering Ethereum a much-needed respite from bearish pressures.

However, should Ethereum falter, a bearish slide to the next major support level of around $2,000 may be imminent. Such a decline would represent a significant drop of nearly 20% from its current price around the $2,300 mark, posing a stern test for Ethereum’s market upward stability.

Over the past 24 hours, Ethereum has witnessed a noticeable 4.3% decrease in value, breaching Ali’s critical demand zone. Currently, ETH trades at $2,368, signaling a possibility of a further plunge from here.

Ethereum price chart on TradingView
ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT on

This price dip is mirrored in Ethereum’s trading volume, which has seen a significant decrease from $19 billion last Monday to just over $10 billion today, indicating lesser trading activity and a shift in investor sentiment.

Ethereum’s Market Dynamics: Whales Buying Dip and Rising Dominance

The current market dip has not gone unnoticed by savvy investors. According to Lookonchain, a crypto analytics platform, a prominent Ethereum whale has capitalized on the opportunity, acquiring 3,600 ETH valued at around $8.9 million.

This strategic move is part of a larger pattern observed in the whale’s trading history, marked by buying low and selling high. This tactic has reportedly amassed profits estimated at $25.8 million.

Amid this bearishness, Ethereum has shown resilience in terms of market dominance. A recent report by analytics firm Santiment reveals that Ethereum’s market share, relative to the total crypto market capitalization, has surged by roughly 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 daily, reaching a peak of 96,300 new addresses in a single day.

These figures suggest a growing interest and engagement in the Ethereum ecosystem despite the current market conditions.

Featured image from Unsplash, Chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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