Santiment predicts that the Ethereum price may recapture the $2k psychological price mark by August.
Ever since reaching its peak of $2,132 in April 2023, Ethereum (ETH) has struggled to regain its bullish momentum.
According to Santiment, the $2,000 psychological area of value has become a pivotal point for traders, determining their optimism or skepticism towards the asset. As bitcoin (BTC) dominated the market in June, only ETH administered a meager 4.8% gain against BTC, which failed to excite traders.
ETH’s subdued price action has resulted in fewer discussions about the asset, at levels parallel to those seen in mid-May. However, history shows that altcoins often thrive when traders are obsessed with other assets.
All eyes are currently on XRP, following Ripple Labs’ partial victory against the Securities and Exchange Commission (SEC) on July 13.
Gauge market sentiment
The report shows that profit-taking still slightly exceeds losses, but this balance could change if ETH sees a significant drop, which could trigger panic selling.
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The most favorable opportunities arise when both groups are in negative territory, indicating potential undervaluation. The report notes that the majority of Ethereum tokens remain in proprietary custody, with less than 7% residing on exchanges. This suggests a lower probability of large sell-offs and reinforces confidence in the asset’s long-term potential.
Analysis of ether prices and whale movements.
At press time, ethereum (ETH) is valued at $1,892, which represents a 5.5% decline over the past seven days. ETH’s 24-hour trading volume is $10.4 billion.
With a circulating supply of 120 million ETH, the token has a market capitalization of $227.2 billion, according to CoinMarketCap.
We can identify some crucial price levels and indicators on the daily chart. The support level at $1,800 can serve as a crucial line of defense against further losses, and buyers are likely to step in to defend the price at this level.
On the other hand, the $2,000 level acts as resistance, where selling pressure tends to build, preventing the price from going higher any time soon. For ethereum to regain bullish momentum and potentially break above this resistance, it would need strong buying momentum and positive market sentiment.
The Relative Strength Index (RSI) on the daily time frame is currently at 43.34. There could still be room for more downside before reaching oversold territory where a potential bounce could occur.
In the last 48 hours, four major Ethereum holders, often called “whales”, moved 78,900 ETH coins to the Gate.io and Coinbase cryptocurrency exchanges. This significant movement of funds attracted the attention of the crypto community.
Furthermore, an ethereum wallet that had been dormant for eight years suddenly came to life and transferred 61,216 ETH, valued at a staggering $116 million, to the Kraken exchange. This unexpected awakening of the sleeping whale aroused curiosity and could be interpreted as a bearish sign.
Keeping a patient outlook, however, Santiment predicts that Ethereum could rally above $2,000 again, possibly before August even rolls around.
