The price of Bitcoin dropped below $27,200 after the release of US data, but at the time of writing this article, it was at $27,625. While it is uncertain whether this rise is a trap, altcoins did not return at the same pace. Ethereum, the largest altcoin in terms of market value, experienced a major disappointment this week. So what are the current expectations?
Readings on the daily chart indicate that the price of ETH has bounced back on the long-term rising support trend line, which has been in place for 473 days. After seeing a higher bottom, the price reached $1,751 on October 1st. However, we subsequently witnessed a significant disappointment as the price retreated.
Ether ETFs, which started trading on Monday, saw a total volume of nearly $2 million per day. This indicates that investor interest is extremely low.
Among the latest news, the request by Grayscale to convert its ETH trust into an ETF was noteworthy. After the success of GBTC and the approval of Ether futures ETFs, the largest crypto asset management firm wants to add a spot Ether ETF alongside the spot BTC ETF. However, the SEC has not given the greenlight yet.
The latest significant development was the blog post published by Vitalik. The co-founder of Ethereum discussed the benefits and risks of introducing new features to the largest smart contract platform.
Undoubtedly, Ethereum is the largest smart contract platform and seems to maintain this position as long as cryptocurrencies survive. However, the price of Ether has not risen as expected. Moreover, due to the decrease in transactions on the network as a result of bear markets, Ether has become inflationary in the short term.
So what’s next for the price? Demand is still weak, and RSI needs to stay strong above 50 for a clear reversal. With volumes eroded to this extent, risk-averse investors are inclined towards selling during resistance tests. This weakens the bulls due to short-term profit appetites.
If the upward trend continues, ETH could reach the next resistance at $1,820. However, a close below the long-term rising support trend line could cause the ETH price to drop to $1,430.