Ethereum (ETH) price is showing signs of recovery after the summer crash
TLDR
The price of ATM (ETH) has been declining since March. Despite the launch of the ETH ETF, technical indicators show that the ETH Whale interest in ETH is slowly reviving. Among ETH futures traders
Ethereum, the second largest by market capitalization, is showing signs of price recovery after months of decline.
Despite the launch of Ethereum-based exchange-traded funds (ETFs) in the United States, the price of ETH has fallen more than 32 percent since the end of March.
However, recent data and market indicators suggest that selling pressure is waning and a price collapse may be on the horizon.
A technical analysis from crypto analyst Michael Van de Pop shows the significant divergence of Ether's price chart against Bitcoin.
Often associated with price reversals, this pattern indicates strengthening market momentum despite low inflation. Van de Pop suggests that if this trend continues, “it could be a big push for the whole market.”
I am very curious about the $ETH chart.
The energy difference is still valid and the high has been reduced.
The decline of the past months may be broken to the upside.
This can be a big push for the whole market. pic.twitter.com/M3hDhxD56Z
— Michael Van de Pop (@CryptoMichNL) September 9, 2024
The wave movement, which can have a huge impact on cryptocurrency prices, is showing signs of renewed interest in Ethereum. According to on-chain intelligence firm Lookonchain, one Savvy Well recently bought 5,000 ETH worth more than $11.4 million.
This follows a period of profit making by the same entity, who previously bought ETH at a low price and sold it at a high price, making a profit of over $4 million.
A smart whale bought 5,000 $ETH($11.46M) from the bottom again in the last 2 days!
The whale bought 5,200 $ETH in November 2022 at an average price of $1,322.
They then sold it for an average of $2,093 in January, December 2023 and January 2024, earning over $4M!… pic.twitter.com/yTKB12dU4i
— Lookonchain (@lookonchain) September 9, 2024
The exchange data provides further evidence that the selling pressure on Ethereum can be reduced. CryptoQuant reported that on September 7th, ETH entered derivatives exchanges to the tune of over 40,000 ETH.
However, subsequent trades suggest that traders' willingness to open short positions is waning. Additionally, the exchange's revenue reached its lowest level since the end of July on September 8, with only 37,415 ETH deposited.
The Ethereum Foundation recently sold 450 ETH for $1 million of the DAI stablecoin. Metalpha, a Hong Kong-based crypto asset manager, has moved more than $54 million worth of ETH to Binance in the past few days.
Despite these mixed signals, Ethereum's price action is showing three consecutive green candles, which could indicate an attempt to move higher. For this crash to materialize, buyers must crowd out sellers in the market.
The Relative Strength Index (RSI) is currently sitting at 37, indicating bearish territory, but the move could indicate bearish bearishness.
Despite the overall bearish sentiment in the market, Ethereum funding volume has turned positive, indicating optimism among futures traders. This difference between short-term trader sentiment and long-term price trends can indicate market volatility.
The launch of Ethereum ETFs in July is expected to drive significant price increases, similar to the impact of Bitcoin ETFs earlier in the year.
However, Ethereum-based ETFs have seen sustained negative inflows, with cumulative net inflows exceeding $568 million since their inception, according to Farside Investors data.
