Ethereum

2024

Since Ethereum (ETH) peaked at $2,717 in the last two weeks, the asset has experienced a gradual decline, culminating in its arrival at a key demand zone, which could be instrumental in determining its imminent price trajectory, according to a prominent crypto analyst. 
<h2 id="critical-support-zone-flags-continuous-bearish-move">Critical Support Zone Flags Continuous Bearish Move</h2> 
Renowned crypto analyst Ali has <a href="https://twitter.com/ali_charts/status/1749197673838604379?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">pinpointed</a> a critical demand zone for ETH, ranging between $2,388 and $2,460. The resilience of this support level could pave the way for an upward trajectory, offering Ethereum a much-needed <a href="https://www.newsbtc.com/news/ethereum/developer-hails-eth-burning-will-ethereum-break-3000/" target="_blank" rel="noopener ">respite from bearish pressures</a>. 
However, should Ethereum falter, a bearish slide to the next major support level of around $2,000 may be imminent. Such a decline would represent a significant drop of nearly 20% from its current price around the $2,300 mark, posing a stern test for Ethereum’s market upward stability. 
<blockquote class="twitter-tweet"> 
 <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#Ethereum</a> Market Update: <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">$ETH</a> is currently in a key demand zone, ranging between $2,388 and $2,460. If this support holds strong, there’s a clear path ahead with minimal resistance, offering a potential for upward movement. 
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/26a0.png" alt="⚠" class="wp-smiley" style="height: 1em; max-height: 1em;"> However, if <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#ETH</a> fails to maintain this level, we… <a href="https://t.co/F0HfyrSdGF" target="_blank" rel="noopener nofollow">pic.twitter.com/F0HfyrSdGF</a> 
 — Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1749197673838604379?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">January 21, 2024</a>
</blockquote> 
Over the past 24 hours, Ethereum has witnessed a noticeable 4.3% decrease in value, breaching Ali’s critical demand zone. Currently, ETH trades at $2,368, signaling a possibility of a further plunge from here. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/gXsfI0dj/" alt="Ethereum price chart on TradingView" width="2770" height="1556"> 
This price dip is mirrored in Ethereum’s trading volume, which has seen a significant decrease from $19 billion last Monday to just over $10 billion today, indicating lesser trading activity and a shift in investor sentiment. 
<h2 id="ethereum-s-market-dynamics-whales-buying-dip-and-rising-dominance">Ethereum’s Market Dynamics: Whales Buying Dip and Rising Dominance</h2> 
The current market dip has not gone unnoticed by savvy investors. According to Lookonchain, a crypto analytics platform, a prominent Ethereum whale has <a href="https://www.newsbtc.com/bitcoin-news/market-dips-whales-play-bitcoin-and-ethereum-snagged-by-savvy-investors/" target="_blank" rel="noopener ">capitalized on the opportunity</a>, acquiring 3,600 ETH valued at around $8.9 million. 
<blockquote class="twitter-tweet"> 
 After the price of <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">$ETH</a> dropped today, this smart whale bought 3,600 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">$ETH</a>($8.9M) back at a lower price 5 hours ago. 
 This whale is very good at buying <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">$ETH</a> at low prices and selling <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">$ETH</a> at highs. 
 The profit is ~$25.8M currently!<a href="https://t.co/UzXbheftr1" target="_blank" rel="noopener nofollow">https://t.co/UzXbheftr1</a> <a href="https://t.co/DannZzsQVk" target="_blank" rel="noopener nofollow">pic.twitter.com/DannZzsQVk</a> 
 — Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1748245949795991962?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">January 19, 2024</a>
</blockquote> 
This strategic move is part of a larger pattern observed in the whale’s trading history, marked by buying low and selling high. This tactic has reportedly amassed profits estimated at $25.8 million. 
Amid this bearishness, Ethereum has shown resilience in terms of <a href="https://www.newsbtc.com/news/ethereum/predictions-eth-price-ethereum/" target="_blank" rel="noopener ">market dominance</a>. A recent report by analytics firm Santiment reveals that Ethereum’s market share, relative to the total crypto market capitalization, has <a href="https://www.newsbtc.com/news/bitcoin-backs-down-ethereum-steals-the-spotlight-with-surge-in-market-dominance/" target="_blank" rel="noopener ">surged by roughly 22.4% in just one week</a>. 
This growth is complemented by a significant increase in active Ethereum addresses, with an average of 89,400 new addresses joining the network daily, reaching a peak of 96,300 new addresses in a single day. 
These figures suggest a <a href="https://www.newsbtc.com/ethereum-news/qcp-capital-forecasts-eths-dominance-over-bitcoin-to-persist-ethereum-etfs-in-focus/" target="_blank" rel="noopener ">growing interest</a> and engagement in the Ethereum ecosystem despite the current market conditions. 
<blockquote class="twitter-tweet"> 
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4c8.png" alt="📈" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#Ethereum</a>‘s price dominance continues to surge against <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#Bitcoin</a>‘s, now +22.4% in a week. During this stretch, there have been 89.4K new <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">$ETH</a> addresses created per day, and 96.3K wallets just yesterday. Additionally, the 2nd largest market cap asset’s supply on 
 (Cont) <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/9nHCl6PJPy" target="_blank" rel="noopener nofollow">pic.twitter.com/9nHCl6PJPy</a> 
 — Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1747362860941103110?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">January 16, 2024</a>
</blockquote> 
Featured image from Unsplash, Chart from TradingView

Ethereum’s Tipping Point: Analyst Warns Of Steep Drop To $2,000

Table of Contents

NewsBTC

Other articles published on Jan 23, 2024

The SEC’s X Account Underwent a “SIM Swap” Attack, SEC Confirmed

Institutional crypto products record $21M in outflows last week

Scammers deceived 42K consumers using FOMO and deceptive code

Coinbase Stock Declines Following JPMorgan’s Downgrade Amid Bitcoin ETF Disappointment

Bitcoin’s Selling Pressure May Soon Decrease

The Proposal That Could Give This Altcoin a Rally Has Been Rejected!

Join our free newsletter for daily crypto updates!