Ethereum Price Prediction as Trading Volume Surpasses $13.5 Billion

Last updated: May 16, 2024 at 6:23 p.m. EDT | 3 minutes of reading

Ethereum Price Prediction as Daily Trading Volume Surpasses $10 Billion – Are Whales Hoarding ETH? / Source: Cryptonews

Ethereum (ETH) price is under pressure on Thursday, after falling 3.3% from over $3,040 to current levels around $2,930, amid high daily trading volumes of 13 .5 billion dollars, according to Yahoo Finance data.

Ether has now almost erased US CPI rises on Wednesdayweighed as bearish sentiments re-emerge in the market.

Following a recent deadly crossover in the ETH/BTC pair, the Ether the price has just reached a new three-year low.

In a note on Wednesday, David Han, research analyst at Coinbase, gave some reasons for ETH’s underperformance.

“The approval of Bitcoin Spot ETF in the United States has reinforced the discourse on bitcoin’s store of value and its status as a macro asset.

“On the other hand, open questions about ETH’s fundamental positioning in the crypto sector remain,” he continued.

THE SECOND is expected to reject applications for several U.S. spot Ethereum ETFs later this month.

Many believe this is because the SEC is still considering whether Ethereum could be considered a security.

Additionally, “competing Layer 1s like Solana hurt Ethereum’s positioning as the go-to network for deploying decentralized applications (dApps),” Han said.

Ethereum Dencun the upgrade earlier this year also reduced the crypto burn rate via a substantial reduction in costs.

This will likely be a long-term benefit for Ethereum adoption, as high fees discourage use of the network.

But some have called the lower burn rate bearish for ETH.

So it’s no surprise that Citron Research founder Andrew Left just told Benzinga that he shorted Ether.

Ether will be labeled as a security and will not get the same stamp of approval as Bitcoin, he claimed.

ETH/BTC remains stuck in a multi-year downtrend. Whales may be reluctant to accumulate when the much safer and better accepted Bitcoin seems so strong.

ETH/BTC remains stuck in a multi-year downtrend. Source: TradingView

Ethereum Price Prediction – What’s Next for ETH Price?

The latest drop in Ethereum price suggests that the bears remain in control of this market in the near term.

First, ETH continues to encounter strong resistance at its major short-term moving averages. The 21DMA was the major obstacle he was unable to overcome this week.

Ethereum price continues to encounter strong resistance at its major short-term moving averages. Source: TradingViewEther

Second, Ethereum price remains stuck in a medium-term downtrend channel from previous yearly highs.

Ethereum price remains stuck in a medium-term downtrend channel from previous yearly highs. Source: TradingView

Third, Ether appears to be forming a descending triangle structure, with a price floor currently around $2,850.

Ether appears to be forming a descending triangular structure, with a price floor currently around $2,850. Source: TradingViewl fr

Descending triangles usually form before bearish breakouts.

Traders should also keep an eye on the ongoing uptrend since October.

Ethereum price appears headed for a decline below the recent low. The first downside target would be early 2024 highs near $2,700.

The next major support area would be around $2,150. Whales would likely return to the market to accumulate if ETH tests this zone again.

Yes, things are not looking good for ETH compared to BTC. But we are still in the middle of a cryptocurrency bull market.

And at $2,150, Ether would see a nearly 50% discount from its previous annual high price.

Ethereum Alternative to Consider

Ethereum’s decline comes at a time when meme coin season may be about to resume.

Without a doubt, meme stock season is here again since GameStop icon Roaring Kitty returned to social media earlier this week.

Investors looking for better upside prospects than those offered by ETH might want to position themselves in the meme coin market.

Established meme coins like Dogecoin and Shiba Inu are relatively “safe” bets that could yield 5x returns.

For investors looking for 50-100x gains, they need to find newer meme coins.

A new coin project that Cryptonews analysts really like is Vienna AI (WAI).

The fun new sausage dog themed play offers a continuation of AI-powered trading tools.

Investors have already invested nearly $2 million in the WAI presale.

Interested investors had better act quickly. When the presale reaches $2.15 million, the price of WAI will increase.

Presale investors are also currently enjoying huge staking returns of 499%, although these decrease as the presale progresses.

Buy WAI here

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