Both Bitcoin and Ethereum have entered periods of consolidation over the past two weeks despite attempts by both to break above and below their respective medium-term price ranges.
Ethereum may continue its consolidation for the time being, as there has been one large holder that has appeared with a large amount of ETH to sell.
This may prevent the cryptocurrency from moving higher in the near term and may signal that there are holders of the coin that aren’t willing to let Ethereum go up just yet.
Ethereum sees large sell wall
According to crypto trader “Cyrii,” there is an entity or group of traders that are selling over 32,000 Ethereum, currently worth around $40,000,000, on Bitfinex’s Ethereum/USD market.
This is by far the largest entry/wall on this market’s order book.
Analyst Nik Yaremchuk noted more recently that there is now 25,000 Ethereum worth of selling pressure left. As can be seen in the chart he shared, there has not been a single trade printed above the $1,250 level, as the selling has yet to pull that sell order.
It may be that this sell wall is related to a large claim that took place on Bitfinex’s margin book a few weeks ago.
As noted by crypto-asset analyst “Light,” the $1.7 billion long opened on Bitfinex by an unknown entity has started to shrink over the past few days via what is known as a “claim.”
A claim on Bitfinex is when a margin trade is converted into an exchange trade, meaning the cost to borrow capital is settled to the lender.
This means that the trader was holding a large ETH spot position, and might be unwinding it now.
This selling pressure being placed in Ethereum markets comes in spite of the fact that the cryptocurrency has seen strong on-chain trends.
As reported by this outlet previously Spencer Noon, an investor at crypto-focused venture firm Variant and an on-chain analyst, says that there are a number of on-chain trends indicating Ethereum will “blow past its all-time high.”
- Ethereum’s transaction fees are more than double of Bitcoin, indicating to some that it is one of the most useful, if not the most useful, crypto-asset and blockchain network.
- The amount of value transferred on Ethereum via stablecoins, ETH itself, and other tokens is surpassing Bitcoin and is far above that of other blockchains. This is largely attributed to the strength in the DeFi space and the rise of stablecoins, of which there is now over $20 billion worth on the Ethereum network, discounting algorithmic stablecoins.
- Ethereum has an all-time high of daily active addresses, at around 550,000 (90-day moving average).
- Ethereum has seen a strong influx of capital locked up in its native decentralized finance applications, with the total value locked in DeFi reaching past $25 billion.
Ethereum Price On the Brink of Breakout! $11.3k Target Could be Imminent!
The global crypto space is making some serious moves over the last week with 10.8% profits reaching a $2.50 trillion market cap. However, Bitcoin’s dominance has risen by 0.66% taking BTC price level to the $62,000 milestone on 15th October 2021.
Besides, its counterpart Ethereum with top-notch performance surpassed the $3,800 price level with 7.74% gains over the last week. The altcoin on the other hand is showing the potential signs to go hand in hand with Bitcoin.
Analyst Predicts Ethereum to Surge Beyond $11k!
Popular crypto analyst Micheal Van de Poppe made an exciting prediction for the altcoin. He said ETH/USDT trading pair is retesting at a very crucial resistance between $3.8k to $4k, break out could give a rapid boost to the price action. He added altcoin is partially reflecting the footsteps of Bitcoin as it has previously done in 2017. Hence, according to the analyst, the asset could range between $6k and $8.7k in the upcoming bull run.
He went on to say if the digital coin closes major Fibonacci levels of 3.618 and 4.618 then the asset could take an upswing varying between $11.3k and $14k. Further, addressing Bitcoin’s recent bull rally, he manifested that if it continues to rally by 20% more, then Ethereum could follow and leg up by 10%. On the contrary, the analyst mentioned a strong support area for the altcoin between $2.9k and $3.3k.
Ethereum Breaks Double Top Pattern!
The second-largest crypto-asset experienced a phenomenal increase in the weekly trade volume of 7.03%. At present, the altcoin is in a strong consolidation phase around $3,863. There seems to be a lack of FOMO as the selling pressure is pretty dominant. In a one-hour chart, there are a considerable number of red candles.
If the buyers come forward showing interest in the asset then the asset is anticipated to surpass a major resistance level of $4,042. On the flip side, the asset could fall well below $4,000. A comfortable support zone for the asset could be between $3,500 and $4,000.
On the other hand, the total value in the ETH 2.0 deposit contract recorded an ATH of over $30 trillion. As the upgrade is programmed to launch any time soon. This could act as a major catalyst in the coming days. Hence, the altcoin has the strong potential to reach new highs.
Top Analyst Predicts 200% Boom for Ethereum Over Bitcoin – But Issues Warning to Crypto Traders Considering Altcoin Markets
A widely followed crypto analyst sees a volatile Q4 ahead for altcoins but thinks Ethereum will end the cycle with a massive run against Bitcoin.
Crypto strategist Michaël van de Poppe tells his 443,3000 Twitter followers that it is within the realm of possibilities for Ethereum to rally 200% against Bitcoin (ETH/BTC) in the coming months.
However, he warns that BTC may take over the markets at the expense of altcoins until December. According to the trader, December is historically is the month to buy digital assets other than Bitcoin.
“December is often the best period to buy altcoins.
If history repeats, we might be getting a run of 200% on ETH/BTC towards the ATH (all-time high) region from there, but first, a heavier correction while Bitcoin does well.”
Although Van de Poppe is short-term bearish on altcoins, he believes the digital assets will eventually follow Bitcoin’s lead.
Taking a closer look at Bitcoin, Van de Poppe plots the price action of the top crypto asset for the coming weeks.
“We still are not seeing too much strength on the altcoin market. So, it’s still not the right time to be in them, and I’m assuming we’re still going to see strength on Bitcoin for the coming weeks in the scenario that I’ve made here in which a test of $70,000 is most likely going to take place within a month from now before we get a final corrective move, retest of the range [$59,405-$61,213] that we’ve been cracking through before we’re going to test a new all-time high region and going to finalize this entire bull cycle.”
Massive drop in Ethereum exchange reserves signals imminent supply shock, ETH eyes $8,000
- Over 400,000 ETH was pulled out of Coinbase, dropping exchange reserves and driving a supply crisis.
- Average Ethereum gas fees stay above $20 due to an increase in pressure from smart contracts on the network’s blockchain.
- Analysts who are bullish on Ethereum expect ETH price to cross $5000 in an upward climb.
Institutional investors are bullish on Ethereum with rising capital inflow. Ethereum reserves across exchanges have dropped as outflow increases.
Coinbase notes massive Ethereum exchange outflow
Coinbase noted a withdrawal of 400,000 Ethereum tokens, and according to community-driven crypto platform CryptoQuant, it is likely that the outflow was institutional activity. Analysts expect a bullish impact on ETH prices.
400,000 Ethereum tokens are the equivalent of $1.5 billion, withdrawn from the second-largest cryptocurrency exchange. The exchange outflow indicator is considered a sign of increased outflow and a supply shortage in Ethereum.
Ethereum Exchange Outflow.
Ethereum has posted over nearly 20% gains in the past two weeks.
Interestingly, there is a spike in whale activity on the Ethereum network. Over $188 million worth of Ethereum was moved between two anonymous cryptocurrency wallets in a single transaction.
A mysterious whale initiated the transaction, and it was sent to an unknown recipient. The details of the transaction are as follows:
Whale activity on the Ethereum Network.
With news of Bitcoin ETF getting approval by the Securities & Exchange Commission next week, experts are awaiting Ethereum’s turn. Analysts are of the opinion that following Bitcoin ETF approval, capital inflow to Ethereum and altcoins will increase.
Pseudonymous cryptocurreny trader and analyst @jroberts3334 has set a target of $8000 for Ethereum for February 2022.
My target for ETH is 7600/8000 by Feb. The Altair upgrade is coming quickly on Oct 27. The merge of POW/POS and L2 upgrades are coming quicker than people realize – I believe it will coincide nicely with this next leg higher in BTC (after 1 more possible dip).— jrob 🍌₿ Ξ (@jroberts4334) October 14, 2021
Simon Dedick, Managing Partner of Moonrock Capital, is bullish on Ethereum; he tweeted:
FXStreet analysts have evaluated the ETH price trend to analyze where altcoin is headed next. Analysts have set a target of $5200 for ETH price.