Ethereum's Recent Price Drop: A Closer Look
Ethereum [ETH], like many other cryptocurrencies, often experiences ups and downs in its price. Recently, it took a significant hit, dropping nearly 9% in just 24 hours. This change took Ethereum’s price down to $2,460, from a peak of $2,696 just a day before. This drastic fall has stirred various opinions among experts about what might come next for Ethereum, which is the second-largest cryptocurrency after Bitcoin [BTC] by market cap.
Major Rebound or Further Downside Next?
When talking about market trends, a crypto analyst named Anup Dhungana shared his thoughts. He believes there might be more decline for Ethereum. Anup pointed out a possible double bottom pattern: This term is used when a price drops twice to a similar level before rising again. He suggests that Ethereum might hit a support level at $2,200, which could help the price stabilize and potentially rise again. However, if Ethereum falls below this support level, it could mean further losses.
On the other side, an analyst known as ‘The Cryptomist’ has a slightly optimistic view. She warns against losing hope just yet. While she acknowledges the possibility of Ethereum retesting its recent low, she also mentions that the close of the monthly trading period could lead to a price increase, suggesting a temporary rebound might be on the horizon.
What Do Ethereum’s Fundamentals Suggest?
Apart from technical analysis, looking at Ethereum’s fundamentals can provide insight. According to a research firm called Glassnode, the number of active Ethereum addresses has varied. Earlier in August, this number went up to 589,000 but has since decreased to 444,000. This drop could point to less activity on the network, which might negatively impact Ethereum’s price as fewer transactions are happening.
Additionally, Ethereum’s Open Interest — which refers to the number of open contracts in the market—has fallen by 7.42% according to Coinglass, with its value now at $10.60 billion. A decline in Open Interest might mean traders are closing their positions due to uncertainty. Despite this, the volume of trading has increased significantly, showing a 100% rise to $38.97 billion. This increase in trading activity often leads to volatility, meaning Ethereum’s price might continue to fluctuate dramatically.
In summary, Ethereum’s recent price drop has led to varying predictions about its future. While some experts foresee continued decline, others suggest a potential rebound. Observing both technical indicators and fundamental metrics can offer a more comprehensive view of Ethereum’s path forward.
