Ethereum (ETH) Eyes $3,000 as Low Selling Signals End of Downtrend—Analyst Insights
crypto-news-flash.com 22 August 2024 12:16, UTC - Ethereum is showing signs of a potential recovery as investor confidence rises, driven by a decrease in realized losses and MVRV ratio positioning which suggests that Ethereum is currently undervalued.
- A successful breach above the $2,681 resistance level could set the stage for a rally toward the next significant resistance at $2,930.
Ethereum, the second largest cryptocurrency by market cap, is showing signs of a potential recovery that could see ETH’s price surge toward $3000. Sailing through stormy seas, Ethereum underwent a downturn that saw its price plunge to lows of $2500, leading to massive losses. Yet, a turning point is near.
Investor sentiment is slowly drifting from panic selling to a cautious but optimistic outlook, further bolstering the likelihood of bullish momentum. The recent market mayhem caused Ethereum’s price to consolidate below the $2,681 mark. This period led investors to crumble and cash out, doubling down on the decline. However, over the past ten days, the bearish sentiment seems to have cooled off, and Ethereum’s price is slowly recovering.
At the time of writing, ETH is swapping hands for $ 2,627.91, marking a 1.82% and 0.07% surge in the last 24 hours and past week respectively. Ethereum’s 24-hour trading volume has seen a 6.15% surge stopping at $12,771,483,503. This trend change has also been reflected in the Market Value to Realized Value (MVRV) ratio, which has entered the “opportunity accumulation zone.”
For the past two weeks, Ethereum has been trading in a rather sideways pattern. Specifically, ETH’s price has been confined within the $2,681 and $2,546 levels, forming a consolidation phase. However, several indicators suggest that ETH is on the verge of breaking out of this consolidation.
A successful breach above the $2,681 resistance level could set the stage for a rally toward the next significant resistance at $2,930. Should Ethereum surpass this level, it could experience a sharp ascend to $3,000; if the momentum is maintained, ETH could propel even higher to highs of $3,330.
Despite the positive sentiment, if ETH takes an unprecedented turn and fails to break above the $2,930 resistance level, it could enter another prolonged period of consolidation above $2,681. This will, first of all, diminish the short-term bullish sentiment. Second, it will lead to further sideways price movement and dampen investor enthusiasm in the worst-case scenario, leading to further plummets.
Nevertheless, the recent selling spree may be over following a drop in realized losses and the MVRV ratio positioning. With investor confidence gradually returning, Ethereum’s price could soon tread towards more surges.
A CryptoQuant analyst commented on Ethereum’s price trajectory, stating, “Current data shows that buyers in Ether are gradually regaining strength. However, time will tell whether this is a temporary rebound or the start of a strong rally led by the bulls.”
