With the crypto market completing the first half of September on a bearish note, the possibility of history repeating has increased. Further, with the price of Bitcoin stabilizing around the $58,000 level, the cryptocurrency market is speculated to have entered into a cool-off period. Despite hovering close to its resistance/support level of $2.3k, the Ethereum …
Ethereum, the second-largest cryptocurrency by market capitalization, is experiencing increasing bearish sentiment in its futures market, according to a recent analysis by CryptoQuant analyst ShayanBTC. The analyst reported on the CryptoQuant QuickTake platform that Ethereum’s futures market has shown its lowest funding rates of 2024. This trend indicates that traders in the perpetual futures market are currently less optimistic about Ethereum’s short-term price movements. Related Reading: Ethereum Sees Massive Outflows from Derivatives: What Does This Mean For ETH? Ethereum Declining Funding Rates And Market Implications According to ShayanBTC, the 50-day moving average of Ethereum’s funding rates has been on a consistent downward trend, indicating a persistent bearish outlook among futures traders. For context, funding rates in perpetual futures contracts are payments made between long and short traders based on the difference between perpetual futures and spot prices. When funding rates are positive, it implies that long traders pay short traders, suggesting bullish sentiment. Conversely, negative funding rates mean short traders pay long traders, signaling a more bearish market stance. In the case of Ethereum, the current negative trend in funding rates highlights a lack of buying interest in the perpetual futures market. Shayan noted: For Ethereum to recover and reach higher price levels, demand in the perpetual futures market must increase. If the current trend of negative funding rates continues, it is likely that Ethereum will experience further price declines in the mid-term. Is A Rally Still Possible? The impact of these bearish funding rates has been quite evident in Ethereum’s recent performance. So far, the cryptocurrency has experienced a consistent decline, dropping by 4.9% in the past 24 hours alone. This decline has dragged Ethereum’s price below the $2,300 mark, compounding its losses over the past month to more than 10%. The persistent bearishness is partly attributed to the “lack of buying interest” in the futures market, as noted by the CryptoQuant analyst. Despite the negative sentiment in the futures market, some analysts remain optimistic about Ethereum’s potential for a rebound. One such analyst, Koroush AK, expressed a more positive outlook, suggesting that Ethereum is due for a significant bounce. Related Reading: Analyst Predicts $4,000 Mid-Term Target for Ethereum, Declares End to ETH Correction Koroush pointed to higher time frames, highlighting the 100-week moving average and the key psychological support level at $2,000 as potential catalysts for a recovery. He anticipates a 10-20% bounce for Ethereum in the coming weeks despite the current market conditions. $ETH Ethereum due a large bounce. Zooming out and looking at the higher time frames; -100 week moving average -Key psychological support ($2000) Expecting a 10-20% bounce over next few weeks. pic.twitter.com/THPPc99oMf — Koroush AK (@KoroushAK) September 16, 2024 Notably, while negative funding rates often reflect a bearish market sentiment, they can also be early indicators of potential market recovery. Negative rates can result in short liquidation cascades, where short positions are forced to close, leading to a sharp price reversal. Featured image created with DALL-E, Chart from TradingView
Today’s Ethereum-Bitcoin (ETH/BTC) trading pair slid below 0.04, a level last seen in April 2021. The declining ETH/BTC ratio could have multiple implications for the wider altcoin market. Altcoins Might Suffer Due To Weak Ethereum One of the key indicators to gauge the resiliency of the altcoin market is the ETH/BTC ratio. The ratio essentially tracks the relative price strength of Ethereum against Bitcoin and is widely considered a metric that could indicate the future potential price action of altcoins. As of September 16, 2024, the ETH/BTC ratio sits at 0.039, a level it last touched 3 years ago in April 2021. In fact, after hitting a high of 0.088 in December 2021, the ETH/BTC ratio has been on a long-lasting decline, barring the occasional dead cat bounce, before further eroding in value. Related Reading: Ethereum Price Nosedives Over 5%, Pressure Mounts on Bulls Regarding altcoin price action, a surging ETH/BTC ratio indicates that Ethereum is performing well against Bitcoin. Conversely, a declining ratio suggests that Bitcoin outperforms Ethereum and other altcoins, which could trigger a shift in confidence away from Ethereum toward Bitcoin. As a result, the wider crypto market might witness a sell-off in altcoins as capital seeks more stable and better-performing assets. Currently, Bitcoin dominance (BTC.D) sits at 57.78%, and it can be observed that the metric has been on a steady uptrend since November 2022. An increase in BTC.D further solidifies a weakening altcoin market, hinting that liquidity is exiting small-cap tokens, which might lead to volatile price action and quick price drawdowns. It’s worth highlighting that the US Securities and Exchange Commission’s (SEC) approval of Ethereum exchange-traded-funds (ETFs) didn’t quite turn out to be as significant an event for ETH price as it did for BTC. Data from crypto ETF tracker SoSoValue shows that the cumulative net outflow for US Ethereum ETFs is $581 million, while the net inflow for US Bitcoin ETFs is $17.3 billion. Can Ethereum Price Change Its Momentum? Ethereum is exchanging hands at $2,282, a price level it last touched in January 2024. Notably, the second-largest cryptocurrency by market cap briefly touched the $3,900 mark, before losing all its gains. Most recently, it was reported that 112,000 ETH was moved to crypto exchanges in one day, suggesting that investors might not be too keen on holding ETH while its price relative to Bitcoin weakens. Related Reading: Ethereum (ETH) Triangle Formation Hints At A Double Bottom: Breakout and New ATH? Some experts opine that now might be a good time to convert BTC holdings to ETH as they see a potential 180% surge in the battered ETH/BTC ratio. The continual selling pressure on Ethereum has also moved ETH to oversold territory, giving hope to ETH holders that the digital asset has likely bottomed and might soon see a strong price recovery. Featured image from Unsplash, Charts from Tradingview.com
Ethereum is wavy when writing as bulls struggle to build momentum and push the coin above the immediate resistance levels at around $2,400 and $2,800. Even so, most ETH holders are upbeat, expecting prices to turn around the corner and soar, even breaking above July highs of around $3,500. 61% Of ETH Holders In The Money Amid this development and the general lull, IntoTheBlock data shows that 61% of all ETH holders are in the money. That over 50% of all ETH holders are in green despite the coin shedding nearly 35% from July highs and nearly 45% from 2024 highs points to resilience, especially in the face of determined bears. Related Reading: Glassnode Founders Say Bitcoin Crash To $37,000 Wouldn’t Be A Bad Thing, Here’s Why Technically, the resilience among ETH holders indicates a wave of optimism sweeping through its ecosystem. According to IntoTheBlock, this development means that at current levels, more ETH holders are making money, way higher than in bear market cycles. Then, profitability tends to fall drastically. For context, IntoTheBlock analysts note that during the 2019/2020 period, when prices fell, the percentage of profitable holders at one point dropped to as low as 10%. Additionally, in the last bear run, the percentage of ETH holders making money fell to 46%. However, this was way higher than the 3% when ETH prices dumped to as low as 3% in the depth of the 2018 bear run. Ethereum Holders Confident, Support Lies At $2,290 And $2,360 ETH’s profitability percentage has evolved over the years, pointing to a maturing market where holders are still confident about what lies ahead. According to Dune data, there are 128,804,395 ETH in the circulating supply. Out of this, the top 1,000 addresses control over 49.1 million or 38.15%. If IntoTheBlock data is anything to go by, most of these whales are in the green, making money. Accordingly, they won’t be incentivized to sell, increasing pressure on ETH. Related Reading: Solana Losses Ground, Drops Below $137 As Bearish Momentum Builds Looking closer at on-chain data, one analyst notes that ETH has a critical support at between $2,290 and $2,360. In this zone, nearly 1.9 million addresses were bought and currently hold approximately 52.3 million ETH. Millions of ETH were bought at this level, meaning it is a critical loading zone. If broken, the analyst predicts sharp losses that will drop the coin below August lows to $1,800 in a bear trend continuation formation. Feature image from DALLE, chart from TradingView
Next-gen zero-knowledge proofs are “orders of magnitude” cheaper than existing options, Risc said.
An analyst has explained how losing this on-chain demand zone could cause Ethereum to witness a crash to as low as $1,800. Ethereum Is Currently Retesting A Major On-Chain Support Zone In a new post on X, analyst Ali Martinez has discussed about how Ethereum is looking like in terms of investor cost basis distribution right now, citing data from the market intelligence platform IntoTheBlock. In the above chart, the dots represent the amount of ETH that was last purchased by investors or addresses inside the corresponding price range. As is visible, the $2,292 to $2,359 range stands out in terms of the size of its dot, suggesting that some heavy buying had occurred between these levels. Related Reading: Bitcoin Sentiment Spikes After Mild Price Jump: Crowd Too Excited Too Quickly? More specifically, almost 52.3 million ETH was acquired by 1.9 million addresses inside this range. Since Ethereum is currently retesting the range, all these investors would be just breaking-even on their investment. To any investor, their cost basis is naturally an important level and thus, they may be more prone to making some kind of move when a retest of it happens. For ranges that host the acquisition level of only a small amount of holders, though, any reaction resulting from a retest isn’t anything too relevant for the wider market. In the case of price ranges that are huge demand zones, however, a retest can cause visible fluctuations in the asset’s price. The aforementioned Ethereum range naturally belongs to this category. As for how exactly a retest of a large demand zone would affect the cryptocurrency, the answer lies in investor psychology. Retests that take place from above, that is, of investors who were in profit just before the retest, generally produce a buying reaction in the market. This is because these holders may believe the asset will go up again in the future, so getting to buy more at their cost basis can appear like a profitable opportunity. As Ethereum is currently retesting the $2,292 to $2,359 range, it’s possible it may feel support and find a rebound. In the scenario that a break under it takes place, however, the cryptocurrency’s price may be in danger. From the chart, it’s apparent that the ranges below this demand zone only carry the cost basis of a small amount of investors, so they may not be able to prevent a further decline in the asset. Related Reading: Legendary Bitcoin Puell Multiple Finally Enters ‘Buy’ Territory “If this demand zone breaks, we could see a sell-off driving ETH toward $1,800,” notes the analyst. A drawdown to this level from the current price would mean a crash of more than 21% for the coin. It now remains to be seen how the Ethereum price will develop in the coming days and if the on-chain support zone will hold. ETH Price After retracing its recovery from the last few days, Ethereum is back at $2,300, which is inside the aforementioned price range. Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
Analysts suggest the ETH/BTC ratio might drop further, potentially to the 0.02-0.03 range, unless there's a significant change in investor sentiment or regulatory clarity that might favor riskier assets.
The Ether whale started selling tokens on Sept. 16, with over $38 million in ETH still in its wallets.
Ether’s price in Bitcoin terms has also fallen to its lowest level since April 2021.
The crypto market has recorded a strong bullish action over the past few days by experiencing a massive inflow of digital assets. Moreover, with the global market cap surpassing the $2.10 Trillion mark, the price of Bitcoin is back around the $60,000 level. Following this, top tokens such as Ethereum and Ripple have breached their …
Ethereum, the second largest crypto by market cap, is trading at $2,420 after a recent price rally. Ethereum has been up by 3.4% and 6.3% in the past 24 hours and seven days, respectively, which has raised hopes for an extended bullish run. As the price performance continues to unfold, some major developments are taking root, which could pave the way for Ethereum’s price to rally back above the $4,000 mark. Stablecoin Transaction Volume Hits New High Despite the bearish sentiment which has lingered in a 30-day timeframe, on-chain data shows that the Ethereum blockchain continues to witness massive activity, especially in the stablecoin niche. The stablecoin trading volume on the blockchain soared massively in August to break its previous all-time high. Particularly, the stablecoin trading volume reached $1.46 trillion. This surge in stablecoin activity further solidifies Ethereum’s position as the go-to blockchain platform in the world of DeFi. As stablecoin adoption continues to rise, this could drive up Ethereum revenue due to demand for ETH tokens used to pay transaction fees. This increased utility could, in turn, contribute to its price reaching $4,000 or beyond. Watch Out For The 0.015 Point In Funding Rates Another key factor to watch now for Ethereum is the funding rate. The funding rate is a metric that tracks the cost of holding a long or short position in the perpetual futures market. Funding rates reflect market sentiment, as positive funding rates indicate that longs are paying short positions, suggesting a bullish outlook, while negative rates show a bearish trend. According to on-chain data from CryptoQuant, the Ethereum funding rate is approaching the 0.015 point. As an analyst at CryptoQuant pointed out, the Ethereum funding rate is currently hovering between 0.002 and 0.005. This movement is reminiscent of a pattern in September 2023, when the funding rate was similarly low. Although these figures might appear modest for a typical bull market, a CryptoQuant analyst has noted that this could be the calm before a major upward movement. This is because the funding rates eventually crossed 0.015 in 2023, allowing Ethereum to “surge from the $1,500s to $4,000s.” A similar occurrence could see Ethereum surging massively to $4,000 in the next few months. Ethereum: Network Growth According to Santiment, the Ethereum network has witnessed massive growth in the past week, recently reaching a four-month high. Apart from its L2 solutions like Optimism and Arbitrum, the platform remains the foundation for decentralized finance (DeFi) and non-fungible tokens (NFTs). This network growth was accompanied by an increase in the creation of wallet addresses and active addresses. At the time of writing, Ethereum is trading at $2,421. If these factors above align in favor of Ethereum, we could see ETH continue to approach the $4,000 mark. Featured image from StormGain, chart from TradingView
The Ethereum price has been one of the major talking points in the crypto space lately, having been under significant bearish pressure in recent weeks. However, the second-largest cryptocurrency seems to be on a recovery path following its first positive weekly performance in more than a month. Recent on-chain data shows that significant amounts of ETH tokens have made their way to centralized exchanges in the past day. The question now is — could this hamper the recent progress shown by the Ethereum price? Here’s How Rising Exchange Inflow Affects Ethereum Price Prominent crypto pundit Ali Martinez took to the X platform to reveal that Ethereum investors have been moving their assets to centralized exchanges in the past 24 hours. This on-chain observation is based on the CryptoQuant exchange reserve metric, which monitors the total amount of a particular cryptocurrency on all exchanges. Related Reading: Is Bitcoin Heading For A Bear Market? Analysts Weigh In On The Price Struggles Typically, the value of this metric increases when investors make more deposits than withdrawals of a token (Ether, in this case) into a centralized exchange. On the flip side, when the exchange reserve metric falls, it implies that the holders are moving their assets out of crypto exchanges. When investors move their assets from self-custodial wallets to centralized exchanges, it is often because they intend to use the platforms’ services, which include selling. As a result, an increase in the exchange reserve metric is often associated with increasing selling pressure. According to data from CryptoQuant, more than 112,000 ETH (worth around $257.6 million) were transferred to cryptocurrency exchanges in the last 24 hours. The movement of these significant Ether amounts could trigger downward pressure on the Ethereum price. Considering its delicate position at the moment, bearish circumstances, such as rising exchange inflows, could hinder the Ethereum price’s newly found momentum. Nonetheless, it is worth noting there has not been such an effect on ETH’s price in the past day. On the contrary, the altcoin is up by more than 3% while looking to breach the $2,500 level. Are Investors Fleeing The Market? The latest on-chain data shows that investors might be flooding out of the Bitcoin and Ethereum markets. According to Ali Martinez, over $2.6 billion has flowed out of the two largest cryptocurrencies in the last seven days. Related Reading: Cardano (ADA) Whales Securing Gains After 10% Upswing: What’s Next? This revelation is based on Glassnode’s aggregate market realized value net position change metric. And it somewhat supports the earlier notion that investors might be offloading their Ether tokens. Moreover, this outflow of capital could spell more trouble for the crypto market, specifically the Bitcoin and Ethereum prices. Featured image created with Dall-E, chart from TradingView
Ethereum is struggling to break through key resistance levels, even after the recent crypto market surge led by Bitcoin. While ETH’s price remains under pressure, there’s encouraging news for investors. Recent data from IntoTheBlock highlights Ethereum’s continued dominance in decentralized exchange (DEX) volume, reinforcing its position as a major player in the DeFi space. Related […]
US-based spot Bitcoin (BTC) exchange-traded-funds (ETFs) saw a net outflow of $43 million on September 11, 2024, following two days of inflows, data from SoSoValue confirms. Ark Invest and Grayscale Lead Bitcoin ETF Outflows According to data from SoSoValue – a crypto ETF data provider – US spot BTC ETF outflows were led by Ark […]
World Liberty Finance is helmed by Trump’s sons, Eric Trump and Donald Trump Jr, and the 18-year-old Barron Trump is the project's "DeFi visionary.”
Donald Trump said in a video posted to X that his World Liberty Financial crypto project would launch Sept. 16.
In the ever-evolving world of cryptocurrency assets, it is believed that most digital assets possess speculative bubble characteristics, demonstrating uncertainty about the stability of their value. However, a market expert has claimed that XRP’s value remains robust and free from the speculative bubble pressures often seen with other cryptocurrencies. Is XRP More Stable Than The […]
Ethereum is under pressure at spot rates. As of September 12, the second most valuable coin struggled for momentum and stuck below $2,400. The daily chart shows that ETH is selling off steadily, and the zone between $2,400 and $2,800 is proving to be a strong liquidation region. Ethereum Revenue Falls To May 2020 Levels […]
Nomic’s nBTC will compete with wBTC and come without controversy or centralization concerns.
A trader acquires a rare Ape-themed CryptoPunk valued at $1.5M for just 10 ETH using a smart contract mechanism that allows a shotgun buyout.
Ethereum co-founder Vitalik Buterin has made a significant move by staking 950 ETH worth $2.24 million with 2.277 million USDC over AAVE. The move comes after a streak of wallets linked to Buterin offloading ETH in the market. As a sudden shift in mentality, the transaction attracts bullish attention in the market.
Apps will be able to settle directly on Movement’s L2 with fast finality ‘postconfirmations’ secured by stakers, the co-founder said.
Indonesian cryptocurrency exchange Indodax is the latest to fall victim to a hack, resulting in the theft of approximately $22 million in digital assets. Indodax Pauses Platform Operations Due To Security Breach According to a post by blockchain security firm SlowMist on X, the hackers stole digital assets such as Bitcoin (BTC), multiple ERC-20 tokens […]
In the ongoing choppy cryptocurrency market, Metalpha, a giant asset management firm based in Hong Kong, is gaining significant attention from crypto enthusiasts due to its continuous Ethereum (ETH) dump. On September 11, 2024, the on-chain analytic firm TheDataNerd made a post on X (previously Twitter) that Metalpha had dumped another 22,000 ETH worth $51.16 …
The Ethereum network could generate $66 billion in free cash flow from transaction fees by 2030, VanEck estimates.
On-chain data shows the Ethereum Whales have continued to accumulate more cryptocurrency as their supply share has risen. Ethereum Whales Now Hold Around 43% Of The Entire Supply In a new post on X, the market intelligence platform IntoTheBlock shared an update on how the Ethereum supply concentration has been looking for the major holder […]
Amid the heightened bearish sentiment in the crypto space, Ethereum (ETH) price has continued to shrink every week. The large-cap altcoin, with a fully diluted valuation of about $279 billion and a daily average traded volume of around $15 billion, has dropped over 35 percent since July to trade about $2,329 on Tuesday during the …
With only a few weeks before Q4 begins, investors and market watchers remain vigilant of the market’s performance. Many expect the next quarter will kickstart the rally’s second leg up, suggesting that most altcoins will explode in the coming months. Several analysts are bullish about the upcoming performances, hinting that the time to accumulate these cryptocurrencies is near its end and that the alt season is near. Related Reading: Crypto Investor Loses $16 Million Amid Friend.tech’s Controversy And Token Crash Investors’ Last Call Before The Altseason Bitcoin (BTC) and Ethereum (ETH) have taken a hit throughout Q3’s market retraces. Since July 1, the flagship cryptocurrency’s price fell more than 10%, while the “King of altcoins” plunged by over 30%. Nonetheless, several altcoins have led the market bounces amid the volatility, displaying a remarkable performance during the shakeouts. Many of the alts have outperformed their BTC pairs, as crypto analyst Michaël van de Poppe stated. Per the post, many technical indicators show that “the Bitcoin pairs of many of the altcoins have been crawling up.” The analyst also considers that BTC and alts have bottomed out and that a market’s next moves will “be great.” Moreover, altcoins’ dominance seems “ready to take the spotlight.” Analyst and trader Titan of Crypto recently noted that Bitcoin dominance “is on the verge of printing a new lower high.” To the analyst, this could trigger the Altseason between Q4 2024 and Q1 2025, which could last until mid-2025. Meanwhile, crypto analyst Alex Clay suggested that investors’ chance to accumulate alts might end soon as “Uptober” approaches. To the analyst, the second correction wave of the Elliot Impulse Wave is over. As a result, cryptocurrencies, excluding BTC and ETH, are ready to begin the third bullish wave. Clay highlighted that the second correction wave displayed a bullish flag pattern. Additionally, he noted that altcoins’ market capitalization has been supported “at the strong confluence of EMA 100 + MA 200 + Key zone.” Based on this, he forecasted the sector’s mid-term target could hit a market capitalization of $1.3 trillion by May 2025 before the fourth wave. Clay also predicted a “conservative” long-term target of a $1.65 trillion market cap for the final impulse wave. Will Altcoins Hit $2 Trillion? Miky Bull highlighted Altcoins’, including ETH, market cap impulse. To the trader, the cryptocurrencies’ market cap is getting ready to break from the bullish flash pattern, potentially targeting a mark above the $1.8 trillion level. Miky previously suggested that the alts chart follows “the 2020 blueprint.” However, he considers they will differentiate by the duration of the re-accumulation phase, as he deems this cycle’s expansion will be “longer and huge.” Related Reading: Analysts Say Bitcoin Will Break $90,000 In Q4 2024 But This Must Happen First Another crypto analyst, Moustache, noted that alts have been in a 2-year-long cup and handle pattern, which is considered extremely bullish. The pattern suggests that altcoins’ market cap will significantly increase from the handle lows. To the trader, if this scenario plays out, alts target a $2.14 trillion market cap by 2025. As of this writing, altcoins sit at a market cap of $558 billion, a 10% decrease since Q3 began. Featured Image from Unsplash.com, Chart from TradingView.com
Centrifuge, a real-world asset (RWA) solution and a Parachain, has a plan for Polkadot, a smart contracts platform. In a proposal, the RWA platform suggests that the newly created Polkadot Community Foundation allocates $3 million USDC to their T-Bill pool. This pool is held within the Anemoy Liquid Treasury Fund and aims to serve multiple objectives. Centrifuge Wants Polkadot To Invest $3 Million In T-Bills In their proposal, allocating the $3 million to T-Bill as an investment will benefit the broader ecosystem. Of note, it will help boost the long-term sustainability of the Polkadot Treasury. This is because the T-Bill pool will generate stable yields from real-world assets, thereby further increasing the financial health of the Treasury. Related Reading: Cardano Foundation Reports Massive Growth In These Key Metrics – ADA Price Soars 3% Though the funds will be from the foundation, Centrifuge argues that injecting the $3 million USDC into the T-Bill pool will help increase the network’s total value locked (TVL). Subsequently, this will also expand the Treasury’s assets. The foundation might consider investing in RWAs, as proposed by Centrifuge, as it could foster the growth of this technology within Polkadot, pushing adoption and growth as a result. Laying out their proposal, Centrifuge said if the foundation decides to invest, it would align with their previous investment in the Anemoy Liquid Treasury Fund. In turn, this may offer a unique opportunity for Polkadot to diversify and expand its investment basket. It is especially now that tokenization and RWA is picking up momentum. RWA Picking Up Steam, Will DOT Reverse Losses? BlackRock, one of the top asset managers in the world, is one of the leaders in tokenizing treasury bills. On Ethereum, the manager has launched BUIDL, a platform where institutions can invest in tokenized Treasury bills. As of September 10, BUIDL is the largest tokenized Treasuries provider, managing over $514 million, according to RWA.xyz. The proposal is so far garnering community support. Roughly a week before the decision, over 53% agreed with this proposal. However, some community members are expressing concerns. Related Reading: Ethereum Sees Massive Outflows from Derivatives: What Does This Mean For ETH? Most of them point to the potential risks and the negative implications of this on the network’s Treasury. One concern is that if this is approved, it could increase DOT spending requests, eventually depleting its reserves. While the prospect of RWA taking off in Polkadot is bullish, DOT is still under pressure. From the daily chart, DOT is down roughly 65% from March highs. It is also in a descending channel and retesting multi-month support. The primary support lies at around $3.5. On the upper end, resistance is at $5. A break above this line will lift sentiment, propelling the coin towards $6.5 in a buy trend continuation formation. Feature image from Unsplash, chart from TradingView
Ethereum price is down today as macroeconomic and crypto-specific factors put a dent in investors’ optimism.