The Ethereum market is going through dark days. With a price around $2,380 and a drop of 10% over the last month, the trend is towards disappointment for crypto investors. The dream of an “Uptober” seems far away, as the ether continues to plunge, fueled by geopolitical tensions and growing institutional disinterest. At the heart of this debacle: an ICO whale, responsible for a massive sale of 47 million in ETH.
Ethereum and the curse of regression
Ethereum, defined as follows, continues to stumble. According to crypto analyst Benjamin Cowenua new 50% drop in the price of ETH would be possible, bringing its price around 1,200 dollars.
This gloomy forecast is based on the logarithmic regression modela tool that has already proven its effectiveness during previous declines in 2016 and 2019. Each time ether lost support against Bitcoin, a fall of around 70% followed.
As Cowen points out in one of his tweets: “ The last time ETH/BTC broke support, ETH/USD fell 70% “.
- 41% drop already observed;
- A market which lost 50 billion in one week;
- Possibility of a drop to $1,200 by the end of 2024.
The signals are worrying, and some experts predict that the fourth quarter of 2024 could still hold unpleasant surprises for investors.
Crypto ETH: whales on the run
If geopolitical tensions and the rise of bitcoin dominate the marketone of the direct causes of this dizzying fall lies in the massive sale of ether by an ICO whale. This giant of the early days has let go no less than 47 million in ETHsending a strong signal to investors: even the most loyal are jumping ship. As a result, trust collapses.
THE ETH trading volumes in ETFs remained desperately low – to the point of disappointing BlackRock, while institutions seem more seduced by Bitcoin.
To make the situation worse, the Fed's measures and economic instability leave little room for a rapid rebound by the prince of cryptos. Vitalik Buterin, co-founder of Ethereum, is however trying to stay the course by proposing a reduction in the staking threshold, but will this be enough to reverse the trend?
In short, nothing is due to chance in this fall of Ethereum. Added to all this misfortune are exploding transaction fees: this has a link to the increase in on-chain activity. In other words, the future seems uncertain for this crypto star.
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