bullish

Arthur

Ether could be nearing a price breakout, based on its current valuation combined with improving macroeconomic conditions following the summer slump in crypto markets.
Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">ETH</a>) price could be near its local bottom, following an over five-month downtrend that started at the end of March.
Based on a key technical chart pattern, Ether could be set to break this downtrend, according to crypto analyst and entrepreneur Michaël van de Poppe, who <a data-ct-non-breakable="null" href="https://x.com/CryptoMichNL/status/1833082929381261403/photo/1" rel="noopener noreferrer nofollow" target="null" text="null" title="null">wrote</a> in a Sept. 9 X post:
<blockquote>
 “The bullish divergence is still valid and a higher low has been made. The downtrend of the past months is likely going to be broken upwards. That could be a significant push for the entire market.”
</blockquote>
<figure><img alt="Ether poised for price breakout after summer slump in crypto markets" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d66e-4c20-70f2-94ed-bc108bbc0e64">
 <figcaption style="text-align: center;">
 ETH/BTC, 12-h chart, bullish divergence. Source: Michaël van de Poppe
 </figcaption>
</figure>
A bullish divergence is a technical formation used by traders to identify a strengthening in market momentum following lower lows. The indicator is associated with price reversals from downtrends and suggests that Ether’s price could break out against Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BTC</a>).
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/arthur-hayes-closes-bitcoin-short-rally-expected" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Arthur Hayes predicts Bitcoin rally after closing short position</a>
<h2 id="ether-whales-are-re-emerging-after-the-summer-crypto-market-slump">Ether whales are re-emerging after the summer crypto market slump</h2>
Following the summer illiquidity in crypto markets, whales, or large Ether holding entities, are re-emerging.
A savvy whale bought 5,000 ETH, worth over $11.4 million, in the past two days, according to a Sept. 9 X <a data-ct-non-breakable="null" href="https://x.com/lookonchain/status/1832996712451104993" rel="noopener noreferrer nofollow" target="null" text="null" title="null">post</a> by onchain intelligence firm Lookonchain:
<blockquote>
 “The whale bought 5,200 $ETH at an average price of $1,322 in November 2022. Then sold it at an average price of $2,093 in January, December 2023, and January 2024, making more than $4M!”
</blockquote>
<figure><img alt="Ether poised for price breakout after summer slump in crypto markets" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d66e-bfc2-72fa-aa2a-9801b78a62be">
 <figcaption style="text-align: center;">
 Savvy Ether whale purchases. Source: Lookonchain
 </figcaption>
</figure>
Whales can significantly impact a cryptocurrency’s price action due to the high amount of market-moving capital. Traders often follow whale selling patterns for cues on a cryptocurrency’s short-term price trajectory.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/el-salvador-bitcoin-three-years-anniversary" rel="noopener noreferrer nofollow" target="null" text="null" title="null">El Salvador marks 3 years of Bitcoin adoption with $31M profit</a>
<h3 id="ether-price-remains-in-an-over-five-month-downtrend-despite-eth-etfs">Ether price remains in an over five–month downtrend despite ETH ETFs</h3>
Ether price has been in a continuous decline since the end of March, despite the historical debut of the first US Ether-based exchange-traded funds (ETFs).
Ether price fell over 32% since the US Ether ETFs <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/grayscale-transfers-1b-eth-coinbase-ahead-ether-etf-launch" rel="noopener noreferrer nofollow" target="null" text="null" title="https://cointelegraph.com/news/grayscale-transfers-1b-eth-coinbase-ahead-ether-etf-launch">debuted for trading on July 23</a> — when ETH was trading above $3,400.
<figure><img alt="Ether poised for price breakout after summer slump in crypto markets" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d66f-5477-73e0-8310-2fb2c6a2e1f2">
 <figcaption style="text-align: center;">
 ETH/USD, 1-year chart. Source: Cointelegraph
 </figcaption>
</figure>
This is partly because of the continuous negative outflows, since the ETH ETFs recorded over $568 million in cumulative net outflows since launch, according to Farside Investors <a data-ct-non-breakable="null" href="https://farside.co.uk/eth/" rel="noopener noreferrer nofollow" target="null" text="null" title="https://farside.co.uk/eth/">data</a>.
<figure><img alt="Ether poised for price breakout after summer slump in crypto markets" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d66f-9370-7f8b-8f5a-0a6cc8a0b685">
 <figcaption style="text-align: center;">
 Ethereum ETF Flow (USD, million). Source: Farside Investors
 </figcaption>
</figure>
Investors anticipated a significant price increase from the launch of the Ether ETFs. For Bitcoin, ETFs accounted for about <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment" rel="noopener noreferrer nofollow" target="null" text="null" title="null">75% of new investment</a> in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/arthur-hayes-bitcoin-50k-price-mt-gox-mark-karpeles-crypto-exchange-hodlers-digest/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Arthur Hayes’ ‘sub $50K’ Bitcoin call, Mt. Gox CEO’s new exchange, and more: Hodler’s Digest, Sept. 1 – 7</a>

Ether poised for price breakout after summer slump in crypto markets

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