Ethereum (ETH) trades in a third consecutive bearish session on the daily timeframe recording 1.4% losses over the last 24 hours. Ether has been finding it hard to achieve a break above the $2,000 psychological level. The altcoin has been sealed in a downtrend over the last two months, a phenomenon that has rubbed off on the traders negatively as lower levels come into the picture for ETH.
On the positive side, whale activity could act as a shield protecting the second largest cryptocurrency by market capitalization from further losses. This is because these large ETH holders have continuously accumulated the token over the last seven years.
According to data from Santiment, a crypto market intelligence platform, the addresses holding more than 1 million ETH in their wallets have consistently accumulated Ethereum. The on-chain data and social metrics analytics platform posted the following chart on twitter saying that these investors “now hold 32.3% of the available supply for the first time since 2016.” This is the highest concentration of ETH in these addresses since July 2016, marking a seven-year high.
— Santiment (@santimentfeed) October 17, 2023
From this it can be deduced that this is not one of those random accumulations as the chart shows that these whales began loading up again in mid-August when the Ethereum price fell toward $1,500. Since then, the total holdings have risen by more than 1.5% and are still growing.
This is likely to have a bullish impact on Ethereum price, which is exactly what is needed at the moment to push the altcoin back above $2,000.
Could Ethereum’s Downtrend Come to an End Soon?
ETH’s price was trading at $1,553 at the time of writing after bouncing off the support line at $1,538 late last week to increase slightly. However, the altcoin failed to break through the resistance provided by the 50-day Simple Moving Average (SMA). Had it managed to do so, ETH would have been closer to reclaiming the resistance level marked by the descending trendline at $1,640 into a support floor.
Rising above this level could bring the next barrier at $1,700 into the picture. Additional barriers lie at $1,713, embraced by the 100-day SMA and the 200-day SMA around the $1,800 psychological level.
Shattering these resistances could open the path fo a run up to the much coveted $2,000 level. This would represent a 28% ascent from the current price.
ETH/USD Daily Chart
However, Ethereum price still has small chances at recovery, looking at the Moving Average Convergence Divergence (MACD) indicator. This oscillating trend-following indicator is hovering in the negative region close to the neutral mark at 0.
To ensure recovery, this line should be flipped into a support floor as the MACD line crosses above the signal line. This would then suggest a bullish signal has been confirmed.
But if the bullish signal is not confirmed and the $1,538 support is lost, the bullish thesis would be invalidated and Ethereum price could fall below the $1,400 mark. This would constitute a 10% descent from the current price.
The post Ethereum Price Prediction: More Losses Loom for ETH as $2000 Remains Elusive appeared first on Analytics Insight.
Source: https://www.analyticsinsight.net/ethereum-price-prediction-more-losses-loom-for-eth-as-2000-remains-elusive/