American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Ethereum price prediction: risky pattern points to a breakdown

by admin October 28, 2024
October 28, 2024
Ethereum price prediction: risky pattern points to a breakdown

Ethereum price remains in a deep bear market, continuing to underperform other top cryptocurrencies like Tron, Bitcoin, and Solana. The ETH token was trading at $2,500 on Monday, a few points above last week’s low of $2,385. It has dropped by almost 40% from its highest level this year, giving it a market cap of $300 billion.

Ethereum sluggish ETF inflows

The first reason why Ethereum price has remained in a bear market is because of the ongoing sluggish demand of ETFs from institutional investors. 

Ethereum ETFs have had cumulative outflows of $504 million, bringing the total assets to $6.8 billion. Before the ETF approvals, the Grayscale Ethereum Trust (ETHE) had over $10 billion in assets. 

Blackrock’s ETHA has $1.09 billion in assets, while Grayscale’s ETHE now has $3.95 billion. Fidelity’s FETH has $423 million, while Bitwise’s ETHW has $241 million.

In contrast, Bitcoin ETFs are firing on all cylinders, with cumulative inflows of almost $22 billion. They all now hold over $65 billion in assets, a sign that investors are more comfortable holding them. 

Read more: Bitcoin price prediction: 4+ reasons BTC could go parabolic

ETH exchange reserves have risen

The other important reason why Ethereum price has struggled is that the amount of coins in exchanges has risen in the past few months. Data by CryptoQuant shows that the amount has risen from 15.4 million in July to over 15.8 million.

A big increase in the amount of Ethereum in exchanges is a sign that many holders are starting to sell their coins. Some of the most prominent sellers were the likes of Vitalik Buterin and the Ethereum Foundation, who have deposited thousands of coins to exchanges in the past few months.

There are signs that many investors have started to sell their coins. For example, data by Bybit shows that a user deposited Ethereum worth $44.8 million coins to Coinbase on Monday morning. Another user deposited coins worth $750k, while another one moved coins worth $33 million on Saturday.

Ethereum is losing market share

The other important reason why Ethereum price has underperformed the market is that it has continued to lose market share across all sectors. 

First, on stablecoins, it has lost its share to Justin Sun’s Tron, which has now become the biggest mover of Tether, the biggest stablecoin in the industry. Data by TronScan shows that the network had a Tether trading volume of $34 billion on Sunday. In most cases, the figure is usually much higher than that.

Second, Ethereum is no longer the favorite platform among developers because of its slow speeds and high transaction costs. A good example of this is in the meme coin industry, where Solana has become the best chain for that. 

As a result, meme coins like Bonk, Popcat, and Cat in a Dog World have attained a $1 billion+ market cap. All Solana meme coins have a market cap of over $11.2 billion, a figure that may continue growing.

Third, data shows that Ethereum is not the favorite chain for DEX traders. According to DeFi Llama, Solana’s DEX transactions jumped by 20% in the last seven days to $15.7 billion, while Ethereum’s dropped by 0.20% to $8.8 billion. 

Ethereum could lose more share when Uniswap, the biggest DEX in its ecosystem launches Unichain, its layer 2 network. 

Additionally, Ethereum has lost market share in industries like Decentralized Public Infrastructure (DePIN) and Non-Fungible Tokens (NFT).

Ethereum price forecast

Ethereum price chart by TradingView

The daily chart shows that the ETH price formed a double-top pattern around the $4,000 level. It then moved below the neckline at $2,810, its lowest point on May 1, and the 50% Fibonacci Retracement point.

Ethereum also formed a death cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) crossed each other. 

Worse, the token has formed a bearish pennant pattern, a popular bearish sign. In most periods, this is one of the most bearish signs in the market. 

With the triangle part of the pennant nearing its confluence, there is a likelihood that it will have a bearish breakout soon. If this happens, Ethereum could drop to the next key support at $2,000, its lowest point in August.

The post Ethereum price prediction: risky pattern points to a breakdown appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
DJT and Phunware stocks have surged: buy or sell?
next post
Bitcoin price prediction: 4+ reasons BTC could go parabolic

Related Posts

Bold Ventures Adds to Management Team

August 9, 2024

DIA ETF forecast: what next for the Dow...

November 27, 2024

Ethereum price prediction: 4 charts that point to...

June 8, 2025

IEP stock: No good reason to invest in...

October 31, 2024

Canada Nickel Company’s NetZero Metals Intends to Develop...

February 9, 2024

NZD/USD suffers a harsh reversal ahead of RBNZ...

October 7, 2024

Uniswap price analysis as Unichain volume, network fees...

May 18, 2025

Sarama Completes Tranche 1 Equity Placement and ASX...

June 27, 2024

WPIC: 2024 Platinum Deficit Revised Upward to 476,000...

May 15, 2024

NZD/USD forecast: signal after the jumbo RBNZ rate...

October 9, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved