Ethereum
Ethereum Price Prediction as Trading Volume Surpasses $13.5 Billion
Last updated: May 16, 2024 at 6:23 p.m. EDT | 3 minutes of reading
Ethereum (ETH) price is under pressure on Thursday, after falling 3.3% from over $3,040 to current levels around $2,930, amid high daily trading volumes of 13 .5 billion dollars, according to Yahoo Finance data.
Ether has now almost erased US CPI rises on Wednesdayweighed as bearish sentiments re-emerge in the market.
Following a recent deadly crossover in the ETH/BTC pair, the Ether the price has just reached a new three-year low.
In a Wednesday noteDavid Han, research analyst at Coinbase, gave some reasons for ETH’s underperformance.
“The approval of spot bitcoin ETFs in the United States has reinforced the narrative of bitcoin’s store of value and its status as a macro asset,” Han said. “On the other hand, open questions about ETH’s fundamental positioning in the crypto sector remain.”
THE SECOND is expected to reject applications for several U.S. spot Ethereum ETFs later this month.
Many believe this is because the SEC is still considering whether Ethereum could be considered a security.
I am aware that this is widely considered a possibility, but this is your official notice that the SEC is considering the security issue of ETH in this upcoming ETF spot order. Note that this question has never been asked regarding a BTC spot/futures ETF product. pic.twitter.com/TwhqmTnJfC
–Scott Johnsson (@SGJohnsson) May 14, 2024
“Competing Layer 1s like Solana hurt Ethereum’s positioning as the ‘go-to’ network for deploying decentralized applications (dApps),” Han said.
Ethereum’s Dencun Upgrade Earlier this year, the crypto burn rate was also significantly reduced thanks to a lower costs.
This will likely be a long-term benefit for Ethereum adoption, as high fees discourage use of the network.
Some, however, have called the lower burn rate bearish for ETH.
It’s no surprise that Citron Research founder Andrew Left told Benzinga that he shorted Ether.
He posited that Ether would be labeled as a security and would not get the same stamp of approval as Bitcoin.
ETH/BTC is trading in a multi-year downtrend. Whales may be reluctant to accumulate when the much safer and better accepted Bitcoin seems so strong.
Ethereum Price Prediction – What’s Next for ETH Price?
The latest drop in Ethereum price suggests that the bears are largely in control of this market in the near term.
First, ETH continues to encounter strong resistance at its major short-term moving averages. The 21DMA was the major obstacle he was unable to overcome this week.
Second, Ethereum price is stuck in a medium-term downtrend channel from previous yearly highs.
Third, Ether appears to be forming a descending triangle structure, with a price floor currently around $2,850.
Descending triangles usually form before bearish breakouts.
Traders should also monitor the upward trend that has been occurring since October.
Ethereum price appears headed for a decline below the recent low. The first downside target would be early 2024 highs near $2,700.
The next major support area would be around $2,150. If ETH tested this zone again, whales would likely return to the market to accumulate.
Yes, the outlook for ETH versus BTC is bleak. But we are still in the middle of a cryptocurrency bull market.
And at $2,150, Ether would see a nearly 50% discount from its previous annual high price.
Ethereum Alternative to Consider
Ethereum’s decline comes at a time when meme coin season may be about to resume.
Without a doubt, meme stock season is here again since GameStop icon Roaring Kitty returned to social media earlier this week.
Investors looking for better upside prospects than ETH offers might want to enter the meme coin market.
Established meme coins like Dogecoin and Shiba Inu are relatively “safe” bets that could yield 5x returns.
Investors looking for 50x to 100x gains should find newer meme coins.
A new coin project that Cryptonews analysts really like is Vienna AI (WAI).
The fun new sausage dog themed play offers a continuation of AI-powered trading tools.
WienerAI is more than a trading robot
It’s your AI trading companion!
More details coming SOON! pic.twitter.com/HG5C0tE6Rk
– WienerAI (@WienerDogAI) May 14, 2024
Investors have already invested nearly $2 million in the WAI presale.
Interested investors may want to act quickly, as the price of WAI will increase when the presale reaches $2.15 million.
Presale investors are also currently earning huge staking returns of 499%, although these decrease as the presale progresses.
Warning: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose your entire capital.