Ethereum (ETH) price struggles to shoot higher when altcoins are soaring. Even Bitcoin (BTC) price performance on a monthly and yearly basis is better than ether’s. Interestingly, the fundamentals of ETH are bullish, but the altcoin fails to rise.
For example, the total number of ETH staked hit $34 million as of Monday, August 26, according to data from CryptoQuant. This massive supply of ETH locked for staking purposes shows that investors are willing to hold ether for long. Since Ethereum’s market value has not reflected these bullish fundamental developments, many traders ignore ETH in the short term.
Ethereum Total Value Staked
However, one development that could change this neutral-to-bearish outlook is if Ether price flips the $3,000 psychological level.
Ethereum Price Analysis: ETH Bulls Struggle
Ethereum price is currently trading at $2,26 after bouncing off the $2,618 support level. This bullish development can be attributed to BTC’s recent thrust above the $60,000 psychological level. Now, ether faces a significant challenge as Bitcoin moves sideways – a continuation of the uptrend or a retracement to key levels. Ideally, a bounce off the $2,618 support level will be a good move from sidelined investors’ perspective. However, continuing the uptrend toward the resistance confluence around $3,000 could trigger panic buying and propel ETH much higher. Regardless, ETH must flip the key psychological level mentioned above to embark on a directional move.
If successful, ETH price could trigger a rally toward the $3,352 to $3,497 resistance zone. In some cases, Ethereum price forecasts a retest the $3,500 hurdle, bringing the total gain to nearly 30%.
Supporting this bullish outlook in Ethereum price is Santiment’s Whale Transaction Count metric. This indicator shows no large upticks in transactions worth $100,000 or $1,000,000, denoting that the whales are not looking to book profits yet.
ETH Whale Transaction Count chart
Additionally, the Network Realized Profit/Loss (NPL) indicator noted a huge uptick last Friday, denoting some investors booked profits on the rally. While this outlook is not entirely bullish, it does denote that short-term investors could be done booking profits and are unlikely to add headwinds should ether climb higher.
ETH NPL chart
Will ETH Price Hit ATH in 2024?
According to the Polymarket data, 77% of the betters believe Ethereum price will not hit an all-time high (ATH) in 2024. Alternatively, 21% expect ether to cross $4,868 in the fourth quarter of 2024.
Ether Price ATH Odds Polymarket
While the technical and on-chain data points to a bullish outlook for Ethereum price, investors need to closely monitor Bitcoin price for sudden reversals. If ETH slips below the $2,618 support level and flips it into a resistance level, it will invalidate the bullish thesis. Such a development could see Etheruem price crash by 4% before sidelined buyers consider stepping in.
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