AUS
NZ
UK
CA
USA
IND
Despite an increase in network activity, Ethereum's price remains below $2,300, hovering around a declining support trendline. The current cryptocurrency market conditions pose the question: will Ethereum experience a recovery or decline further to $2,000?
Currently confined within a bearish channel, Ethereum (ETH) faces substantial selling pressure, placing significant strain on the support trendline. The price fell below $2,300, with a minor recovery over the weekend testing the previously broken $2,350 level.
The ongoing price rejection and rising sell signals indicate difficulty in reclaiming the $2,300 mark, suggesting a potential continuation of the bearish trend. The question remains whether this bearish trend will lead to a breakdown of the support trendline.
Rising Network Activity
Despite the decline in Ethereum's price, network activity on the Ethereum blockchain has markedly increased. Recent data shows significant growth in network activity, with 126,210 new ETH wallets created on September 8. This substantial one-day increase indicates heightened network utility and could signal a potential price rebound.
Additionally, Ethereum whales have reemerged, with one whale acquiring 5,000 ETH tokens worth approximately $11.46 million at recent lows. Historically, this whale has benefitted from price dips, having previously purchased 5,200 ETH at an average price of $1,322 in November 2022 and later sold at an average of $2,093 in early 2024, realizing substantial gains.
Ethereum Price and Market Conditions
On the daily chart, Ethereum trades at $2,297, encountering rejection at an intraday peak of $2,320. After a bearish close last week, marked by a 5.29% decline, the price saw a lower rejection at $2,150. Despite holding this key support level, Ethereum has experienced a 16.98% drop over the past 14 days.
The bearish trend intensifies, placing the support trendline under pressure and warning of a potential breakdown. However, a bullish divergence in the RSI line hints at a possible rebound. Broader market sentiment appears bearish, with the 100-day and 200-day EMA crossovers signaling further declines.
Impact of Rising Ethereum Supply
The recent activities of multi-signature wallets associated with Ethereum co-founder Vitalik Buterin and the Ethereum Foundation, involving the sale of substantial ETH amounts, have drawn attention. Despite whale buybacks, these selling pressures contribute to the prevailing bearish sentiment.
The increasing supply puts critical support levels at risk, with Ethereum’s price facing downward pressure. Maintaining key support levels is crucial for determining future price movements. Any significant breakdowns could lead to more severe declines.
