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Cryptocurrency investors are nearing the end of another week, and a lot has happened in the past 5 days. The Fed was the biggest risk, but the outcome was not as negative as expected. ETF withdrawals significantly shook cryptocurrencies, and today the market values of the biggest altcoins continue to be unstable. So what will happen to Ethereum (ETH)?
Ethereum (ETH) Commentary
The ETH price continues the day at $3,322, and even though transaction fees decreased after the Dencun update, it did not provide supportive momentum for the price. This major update, which triggered short-term rapid increases in Layer2 solutions, became ineffective for ETH due to the negative impact from the ETF channel.
ETH’s price showed a significant increase of 36.52% from February 22 to March 11, and daily active addresses climbed from 449,000 to 545,000. However, since March 13, we have seen the price suffer a loss of over $600.
Normally, an increase in the number of users on the network should have contributed to the price. However, the overall market sentiment sacrificed this positive development. The number of active addresses increased between March 14-21, reaching 626,000.
ETH Price Prediction
Short-term moving averages have recently fallen below the long-term EMAs due to rapid declines. This movement was something that repeated before decisive moments for the price in the past. So, there could be an upcoming increase in volatility for the ETH price. When short-term EMAs fall below their long-term counterparts, it is usually in favor of the bears. The price tends to enter a downtrend.
If the feared scenario materializes, ETH bulls might see the price suddenly test the $3,000 level. Indeed, looking at the latest ETF entries as the article is being prepared, although entries turned positive on Friday, we won’t see a significant net influx. This is disappointing for those expecting a rebound from supports over the weekend. However, this could change if the BlackRock data exceeds $200 million.
ETH falling below $3,000 could trigger a risk of dropping to levels of $2,700 or even $2,500, which might be precipitated by BTC retreating to the $55,000 levels. If such a major correction does not occur, attempts below $3,000 may remain short-lived spikes.
