Despite facing increased fear, uncertainty, and doubt (FUD) in recent periods, Ethereum (ETH) has managed to hold its ground remarkably well.
Compared to its counterparts such as Bitcoin (BTC) and Solana (SOL), ETH has displayed weaker performance, leading some to suggest that investors consider shifting towards alternative assets.
As a result, the overall sentiment around ETH turned pessimistic last week, reaching levels not seen since August.
Nevertheless, an analysis by Income Sharks has highlighted ETH’s resilience and the likelihood of a potential recovery from recent setbacks.
Strength in the face of adversity
Despite the setbacks and negative market sentiment, Income Shark’s assessment indicated the solidity of ETH’s market structure, supported by bullish signals from the Supertrend indicator. According to them,
“$ETH – I am impressed by the disbelief prevailing at this low point. Despite that, the asset continues to create higher highs and higher lows. The Supertrend indicator remains in bullish territory.”
For reference, the Supertrend serves as a straightforward indicator for buying or selling, and at present, it has shown a ‘buy’ signal (represented in green).
Moreover, an uptrend characterized by higher highs typically indicates a potential breakout and sustained upward momentum. With ETH displaying a similar pattern, it suggests a possible bottom and a chance for a breakout, as per Income Sharks’ analysis.
Notably, prominent analyst Ali Martinez expressed optimism, suggesting that the asset could rally towards $6,000 if it manages to stay above $2,400.
However, the current sentiment among whales towards ETH is not overwhelmingly positive at the time of writing.
Since October 22nd, whales have been reducing their exposure to ETH, as evidenced by the declining Whales vs Retail Delta metric.
The recent downturn coincided with a notable decrease in interest from the whale investors. While there has been a mild increase in whale activity recently, as indicated by the metric not being deeply negative, it has yet to reflect strong market interest and a potential rebound for ETH.
Additionally, Ethereum’s co-founder, Vitalik Buterin, has been actively addressing FUD directed at the network, particularly concerning his ETH sales and the activities of the Ethereum Foundation.
At the time of writing, ETH was priced at $2,400. The extent to which the ongoing FUD may impact ETH’s recovery prospects is still uncertain.