ethereum (eth), the world's second-largest cryptocurrency, continues to deal with uncertainty after a sharp price drop. Investors are on tenterhooks, whales are abandoning their positions, and market sentiment is swinging between fear and a glimmer of hope.
ethereum price struggles to regain balance
ethereum” target=”_blank” rel=”nofollow”>The price of ethereum has been on a rollercoaster ride the past few months. After hitting new highs in late 2021, the cryptocurrency plummeted sharply, 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 anxiety among investors, particularly among large holders known as whales. Recent data from Lookonchain paints a worrying picture: a whale that bought eth a year ago is cashing out and pocketing a cool $16 million in profits. This whale's actions highlight a possible exodus of large investors, which could further depress the price.
Fear grips ethereum whales
WhaleStats, a platform that tracks large cryptocurrency holders, reveals that ethereum whales are experiencing extreme fear. The BSC chain's ethereum Whale Fear and Greed Index, a measure of investor sentiment, is currently in the “extreme fear” zone. This suggests that whales are hesitant to make 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 apprehension is palpable. They are closely following market movements, waiting for a clear signal before taking the plunge.
Divided opinions on the future of ether
The future of ethereum remains a topic of debate among crypto analysts. Ashcrypto, a prominent analyst, believes in a possible rally in the third quarter of this year. Based on historical patterns from 2020 and 2021, Ashcrypto predicts a price rise towards $4,000.
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ethereum PRICE UPDATE
– Fractal similar to the fourth quarter of 2020
– The breakout could occur in the third quarter of 2024 based on the historical pattern
Once it breaks out, the 100x alt season will begin with eth leading its way towards $15,000. pic.twitter.com/F1Zr6mQeHB
– Ash crypto (@Ashcryptoreal) twitter.com/Ashcryptoreal/status/1787399937858187716?ref_src=twsrc%5Etfw” rel=”nofollow”>May 6, 2024
IntoTheBlock data reveals a strong correlation between ethereum price and high transaction volume. The recent drop in large transactions coincides with the drop in prices, suggesting that whales play a critical role in influencing the trajectory of ethereum.
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Total crypto market cap currently at $2.28 trillion. Chart: TradingView
eth price action at a glance
Meanwhile, with its next target of $3,090, Ether is expected to continue its downtrend correction, demonstrating further bearish bias when it settles below $3,120 once again.
If the price breaks above $3100, it will stop the projected 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 towards a renaissance?
The answer remains unclear. While some analysts predict a resurgence, the current whale sell-off and market fears pose significant challenges. The coming months will be crucial for ethereum as it navigates a volatile market and attempts to regain investor confidence.
Featured image from Hakai Magazine, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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