Ethereum

2024

bullish

Bitcoin

<p>Ethereum, the second-largest crypto by market capitalization, has experienced a significant drop in value, plunging 24% over the past month. This downturn, mirroring Bitcoins’s recent drop, has brought Ethereum’s price down to $2,522, starkly contrasting the $3,311 peak observed in early August.</p> 
<p>As the market digests this decline, analysts and market participants debate whether a rebound is imminent or further losses are on the horizon.</p> 
<h2 class="wp-block-heading" id="h-price-action-and-potential-rebound-scenarios"><strong>Price Action and Potential Rebound Scenarios</strong></h2> 
<p>Ethereum’s price drop has ignited discussions among analysts regarding the likelihood of a</p> 
<p>rebound or further decline. One notable perspective comes from Anup Dhungana, a prominent cryptocurrency analyst, who suggests that Ethereum could face further downside if the current trend continues.</p> 
<p>Dhungana points to the possibility of a double bottom pattern forming at the $2,200 support level. Typically viewed as a bullish reversal signal, this pattern indicates that Ethereum may find strong support at this price level before potentially rebounding.</p> 
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
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   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;">Looking at this scenario for <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> , if the price drops further, there's a high possibility of a double bottom pattern forming at the support level around $2,200, as shown in the chart<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.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">#Ethereum</a> <a href="https://twitter.com/hashtag/Altcoins?src=hash&amp;ref_src=twsrc%5Etfw">#Altcoins</a> <a href="https://t.co/Doo02fVkk1">https://t.co/Doo02fVkk1</a> <a href="https://t.co/IdrWFdpRWV">pic.twitter.com/IdrWFdpRWV</a></p>— Anup Dhungana (@CryptoAnup) <a href="https://twitter.com/CryptoAnup/status/1828678714147897670?ref_src=twsrc%5Etfw">August 28, 2024</a>
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<p>However, he warns that this can only happen if Ethereum is able to hold onto the $2,200 support, as breaking it even further will likely lead to more losses. A contrary view comes from ‘The Cryptomist,’ another popular analyst on X.</p> 
<p>The Cryptomist, on her part, concurs that there might be a retest of recent lows but says there might be opportunities for an upside spike in prices with the incoming monthly candle. This indicates that Ethereum may experience a relief rise, especially now that the market is towards the tail end of the current trading month.</p> 
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   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24eth&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$eth</a> low in imo, range about to be reclaimed, 3d bull div on ethbtc brewing and finex whales are selling btc into eth for the first time this cycle <a href="https://t.co/K5tRnBhu3F">pic.twitter.com/K5tRnBhu3F</a></p>— Bluntz (@Bluntz_Capital) <a href="https://twitter.com/Bluntz_Capital/status/1828906852668842456?ref_src=twsrc%5Etfw">August 28, 2024</a>
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<p>Adding to the conversation, Bluntz, a crypto commentator on X, suggests that Ethereum is nearing a low point. He notes that the range is about to be reclaimed, with a three-day bullish divergence brewing on the ETH/BTC pair. He also mentions that Finex whales are now selling Bitcoin to purchase Ethereum for the first time in this market cycle, hinting at a potential shift in market sentiment favoring Ethereum.</p> 
<h2 class="wp-block-heading" id="h-mixed-signals-from-ethereum-s-fundamentals"><strong>Mixed Signals from Ethereum’s Fundamentals</strong></h2> 
<p>Beyond its technical analysis, Ethereum’s core metrics paint a mixed picture. Recent data from Glassnode highlighted fluctuations in Ethereum’s active addresses throughout the past month. On August 14th, after a consolidation phase, active addresses surged to 589,000—a notable spike suggesting a network engagement burst.</p> 
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  <img loading="lazy" decoding="async" width="1024" height="521" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-1024x521.png" alt="" class="wp-image-686171" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-1024x521.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-300x153.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-768x391.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-1536x781.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-150x76.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-696x354.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-1068x543.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492-1920x976.png 1920w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-492.png 2000w" sizes="(max-width: 1024px) 100vw, 1024px">
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   <em>ETH Number of Active Addresses 1-Month Chart (Source:&nbsp;<a href="https://studio.glassnode.com/metrics?a=ETH&amp;m=addresses.ActiveCount&amp;s=1722316343&amp;u=1724908343&amp;zoom=30">Glassnode</a>)</em>
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<p>Yet, this uptick was short-lived. Since then, the number of active addresses has steadily decreased, now at 435,323. This decline might hint at waning network activity, potentially applying downward pressure on Ethereum’s price due to reduced participant engagement.</p> 
<p>Conversely, data from Coinglass reveals a more nuanced landscape regarding Ethereum’s Open Interest, which reflects the total number of derivative contracts yet to be settled. Despite a modest 0.01% rise, bringing the current valuation to $10.55 billion, the Open Interest stability suggests a pause-mode market.</p> 
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  <img loading="lazy" decoding="async" width="1024" height="276" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-1024x276.png" alt="ETH Futures Open Interest (Source:&nbsp;CoinGlass)" class="wp-image-686176" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-1024x276.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-300x81.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-768x207.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-1536x414.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-150x40.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-696x188.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-1068x288.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7-1920x517.png 1920w, https://www.thecoinrepublic.com/wp-content/uploads/2024/08/image-2-7.png 2000w" sizes="(max-width: 1024px) 100vw, 1024px">
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   <em>ETH Futures Open Interest (Source:&nbsp;<a href="https://www.coinglass.com/currencies/ETH">CoinGlass</a>)</em>
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<p>This implies traders are maintaining their positions rather than engaging in high-frequency trading. However, beneath this stability surface, Ethereum’s Open Interest volume has plummeted by over 19.20%, now at $29.84 billion. This significant drop could indicate a shrinking appetite for Ethereum derivatives, raising questions about the asset’s future volatility and direction.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/08/29/ethereum-price-plunges-24-rebound-or-more-losses-to-come/">Ethereum Price Plunges 24%: Rebound or More Losses to Come?</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

Ethereum Price Plunges 24%: Rebound or More Losses to Come?

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