Crypto: Ethereum Could Soon Drop by 20%! Here's Why
The price of Ethereum (ETH) could soon experience a significant decline, according to recent on-chain data. These indicators show an imminent bearish trend, which could have a major impact on the crypto market in the coming days.
Crypto: an imminent 20% price drop for ETH?
The price of Ethereum crypto is about to see a drop as it approaches its key resistance zone of around $2,843. It is currently trading at $2,658, recording a slight decrease of 0.2%. On-chain data reinforces this bearish outlook, notably through a positive spike in Ethereum’s exchange flows balance and a decrease in development activity.
Moreover, Shiba Inu (SHIB) has outperformed Ethereum in terms of annual performance, recording a growth of 44.17% against 44.06% for Ethereum. This relative performance could also influence crypto investors’ perception and contribute to the bearish pressure on Ethereum.
The data also reveals that Vitalik Buterin, the founder of Ethereum, transferred $534,000 of ETH to the Kraken exchange. This move could increase the selling pressure on the crypto and contribute to a bearish outlook for Ethereum in the coming days. If the ETH price fails to break above $2,843, it could fall by 20% from its current level of $2,658 to reach its weekly support level of $2,118.
Future Perspectives for Ethereum
Despite the current bearish signals, Ethereum continues to be a major player in the crypto ecosystem. Future developments, such as protocol improvements and the growing adoption of decentralized applications (dApps), could strengthen its position. Investors need to closely monitor these developments to adjust their strategies accordingly.
Current on-chain data suggests an imminent drop in Ethereum’s price. However, the long-term outlook remains promising thanks to ongoing innovations and increasing adoption. Moreover, the recent drop in gas fees on the Ethereum network, reaching historically low levels, could encourage increased use and strengthen Ethereum’s position in the crypto market.
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Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.