Despite Recent Downtrend, Ethereum Keeps Eye on $4.7K
During the last month, Ethereum [ETH] has faced a noticeable decline. While the wider cryptocurrency markets have shown significant volatility, ETH has borne the brunt of the existing market conditions.
Presently, ETH is priced at $2289, reflecting a 5.41% drop in the past 24 hours.
Although there were attempts to break free from the downtrend, ETH saw gains on weekly charts that were overshadowed by losses on daily charts in the past week.
Despite the challenging conditions, an uptick in trading activities indicates signs of resilience for ETH. In the last 24 hours alone, trading volume surged by 81.42% to reach $13.67 billion.
Whether this surge in trading activity is due to buying or selling will determine the future trajectory of ETH’s price.
While facing adversity, analysts have been discussing the conditions surrounding the altcoin. Notably, well-known crypto analyst Javon Marks has shared insights on the matter.
Despite the current struggle, analysts foresee ETH climbing to $4723.5 based on the 2023 cycle.
Interpreting the Market Sentiment
Marks highlighted the 2023 period where ETH recorded a 165% increase in a rally.
According to his assessment, the current market conditions are reminiscent of the previous cycle, suggesting a potential repeat. If the past cycle’s conditions resurface, it could propel ETH to $4723.5.
Moreover, a breakthrough past this level could lead to historical highs of $8100, signifying a doubling in price.
Previously, when ETH reached the noted Go Time levels, it saw a sustained upward trend for three consecutive months, hitting $2717 by January 2024 before retracting.
Overall, the prevailing sentiment among analysts remains highly bullish, hinting at a new all-time high for ETH.
Is ETH Poised for a Rally?
While Marks paints a rosy picture for ETH, suggesting a potential record-breaking surge, current market conditions paint a different picture for ETH’s recovery efforts.
Recent data shows that long positions worth $46.97 million and short positions totaling $2.93 million in ETH have been liquidated over the past day.
This mass liquidation of long positions indicates that investors banking on a market rebound were forced to exit their positions.
The lack of willingness among investors to pay premiums and hold positions reflects a certain degree of uncertainty regarding future outcomes.
Furthermore, Ethereum’s exchange outflow has dwindled from 679119.6 to 71794.34 in the last seven days, indicating reduced accumulation by holders and fewer movements of assets off exchanges by investors.
Another bearish signal emerges as investors seem more inclined to wait for an opportune moment to sell rather than commit to long-term positions.
Lastly, the Taker Buy Sell Ratio has dropped to 0.88 over the past days, suggesting that selling activities have been more aggressive than buying among investors.
In simple terms, the current market conditions do not seem favorable for an imminent price recovery. With the Taker Buy Sell Ratio signaling increased selling activities alongside the recent surge in trading volume, ETH might dip towards the next support level around $2114 before making another upward move.