Ethereum
Can Ethereum (ETH) Investor Conviction Lead to a Rally?
Ethereum (ETH) is stuck in a long-term downtrend, bringing the world’s largest altcoin back below $3,000.
However, the presence of investor confidence and a possible break in an uptrend could be key to the recovery.
Ethereum Investors Remain Optimistic
Ethereum price is already below $3,000, and any further decline could cause the altcoin to reach its lowest level in two months. However, the chances of this happening decrease as investors move away from the downtrend.
The proof is their recent behavior, including the sales frenzy that has slowed in recent weeks. Active deposits measure the movement of coins in exchange wallets. Generally, a spike in this metric is an indication of potential selling.
In the case of ETH, these deposits have seen a decline, suggesting that investors are likely moving away from selling. As a result, the altcoin could also experience a slowdown in price decline.
Active Ethereum deposits. Source: Feeling
Furthermore, by distributing active addresses by profitability, we can notice that the domination of investors over profit has decreased. Their presence is a bearish sign that ETH holders are looking to sell.
However, these investors only represent 15% of all investors transacting on the network. In contrast, loss-making investors have seen a massive 15% increase over the past two months. This is a sign that sales are slowing and HODLing is increasing.
Learn more: How to invest in Ethereum ETFs?
Those who are losing anticipate a price rise and are active on the network, which translates into conviction and trust. This is the key to driving the potential recovery rally for ETH.
ETH Price Prediction: Escaping the Corner
Ethereum price is currently in a descending range and is about to mark a breakout. This could happen with investor support, based on the aforementioned factors.
A falling wedge is a bullish reversal pattern that hints at a potential rally following a breakout above the upper trendline. In the case of ETH, this breakout could lead to a 28% rally, send altcoin to $4,000the target defined by the model.
However, a more realistic outlook would be to reclaim $3,000 again, pushing the price to turn $3,500 into support.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
However, Ethereum price could fall below the lower trendline at $2,800 if the decline continues. This will extend losses, potentially pushing ETH to $2,600, thus invalidating the bullish thesis.
Disclaimer
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