Ethereum Price Dips But Bullish Signs Emerge

Ethereum (ETH) price declined recently, but on-chain data and historical patterns suggest a potential market bottom and bullish reversal. Is now the time to buy ETH?

Article Body:

Ethereum (ETH), the second-largest cryptocurrency, has experienced a price drop of over 3% in the past week, currently trading around $3,553.33. However, several key indicators and historical patterns suggest that this could be a prime opportunity to buy ETH before a potential bull run.

Key Indicators:

  • Historical Pattern: Crypto analyst Milkybull highlighted a similar chart pattern in altcoin market capitalization to that seen in 2020, which preceded a massive altcoin season. This pattern suggests a possible repeat performance, indicating now may be the last chance to buy ETH and other altcoins at a discount.
  • Pi Cycle Top Indicator: This on-chain metric, which combines two moving averages of ETH's price, suggests that ETH is currently near a market bottom, hinting at a potential price uptick. If this holds true, ETH could soon reach $4,920.
  • Fear and Greed Index: The current value of 38% indicates a "fear" phase in the market. Historically, such periods have often preceded bullish rallies.
  • Technical Indicators: While the MACD displays a bullish crossover, other indicators like RSI and CMF remain bearish, suggesting a potential delay before a full-fledged rally.

Market Sentiment and On-Chain Data:

Despite the bullish signals, on-chain data from Santiment reveals increasing selling pressure, with a decline in ETH exchange outflow and an increase in supply on exchanges. This suggests that investors might not be fully capitalizing on the potential buying opportunity.

Conclusion:

Ethereum's recent price dip has presented a mixed picture. While historical patterns and on-chain metrics point towards a potential market bottom and bullish reversal, selling pressure remains a concern. Investors should carefully weigh the risks and potential rewards before making any decisions.

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Source: Santiment

Source: Glassnode

 

Source: TradingView

 

 


Jun 18, 2024

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