Developments in the crypto market continue to attract attention. Accordingly, Ethereum price could benefit from the shift in investors‘ outlook from selling to potentially buying. These indicators stem from a decline in realized losses, which were at an 11-month high less than two weeks ago. So, what can we expect for Ethereum in the upcoming period? Let’s examine together.
What’s Happening with Ethereum?
Ethereum’s price could rebound from the low levels around $2,500. The altcoin king, consolidating below $2,681, continues to seek a breakout. The reason behind this could be the cessation of sales. The realized losses faced by Ethereum holders over the past three weeks can be seen as panic caused by the selling pressure experienced in July. This process leads to a sudden dump, causing sharp losses.
However, this process has significantly changed in the last ten days with the slight recovery of the price and the re-establishment of hope for a rise. This could signal an uptrend, and the Market Value to Realized Value (MVRV) ratio further supports this signal. If Ethereum holders start accumulating from here, Ethereum’s price recovery could gain strength.
ETH Chart Analysis
Ethereum’s price at $2,577 is currently moving sideways between $2,681 and $2,546. This short-term consolidation has been holding Ethereum for the past two weeks. However, the aforementioned factors indicate a possible breakout from this consolidation. This breach could send Ethereum to the next resistance level at $2,930, and a rise above this could direct Ethereum’s price towards $3,000.
A rise from this resistance could send Ethereum’s price to $3,300, signaling a full recovery after the selling pressure experienced in July. However, if Ethereum’s price fails to surpass the $2,930 level, it may enter another consolidation above the $2,681 level. Prolonged sideways movement could invalidate the short-term bullish thesis. Especially, a decrease in the number of users in the ecosystem and a reduction in transactions could lead to selling pressure on Ethereum’s price.
