Ethereum’s price looks pretty solid above $3,000. However, signs point to a potential drop that’ll take it below $3K and wipe out a lot of profit from the market.
But before you panic sell, this drop is expected to be the catalyst that’ll push the second largest crypto to $20,000 in 2025. So, how will all this happen and when?
As of November 26, 2024, Ethereum is trading at $3,444.99, up 4.43% in the last 24 hours. The cryptocurrency has been on a bullish run lately, breaking the $3,500 mark for the first time since July. This recent surge has been attributed to the upcoming alt season and the upsurge in Bitcoin's price, which is on the verge of breaking $100,000.
Now, you might be thinking, "Why would Ethereum need to fall before it can rise?" Well, it's all about market cycles and historical patterns.
Reviewing the ETH/USD one-day chart shows that the coin's moving average convergence divergence (MACD) indicator is possibly forming a death cross. Currently, the coin's MACD line (blue) is trying to go below its signal line (orange).
This indicator checks the price trends and momentum of an asset and shows when it might be a good time to buy or sell. A "death cross" occurs when the MACD line, the shorter-term moving average, crosses below the signal line, the longer-term moving average.
It means that the trend is going down or the momentum is changing. This signal means that there is more pressure to sell, which means that the price of the asset could go down even more.
The rising Aroon Down Line for ETH shows that this growing bearish pressure is real. It is now at 78.57%, which means the price drop of ETH is getting steam.
There are two parts to the Aroon Indicator that work together to assess the power of a price trend: the Aroon Up line, which shows how strong an uptrend is, and the Aroon Down line, which shows how strong a downtrend is.
If the Aroon Down line is going up, it means that recent lows are happening more often, which could mean that a downtrend is starting or that bearish momentum is getting stronger.
Another indicator that supports this potential fall is the selling pressure coming from dormant whale accounts.
According to on-chain data, a whale who bought 398,889 ETH at $6 per coin woke up eight years later and started selling off huge quantities of Ethereum. The wallet has already sold off 73,356 ETH, or about $224 million, and there are currently 325,533 ETH remaining—I wonder what the money’s for.
A whale that accumulated 398,889 $ETH(currently worth $1.34B) at an average price of ~$6 is selling $ETH again!
— Lookonchain (@lookonchain) November 22, 2024
This whale accumulated 398,889 $ETH(then worth $2.4M) between Jan 18 and Mar 10, 2016, at an average cost of ~$6 per $ETH.
After remaining dormant for over 8 years,… pic.twitter.com/9rfw1IrdRt
Anyway, these sell-offs have occurred alongside other major trends, like several ICO participants also offloading some of their ETH holdings.
As of April 2024, an address associated with Interchain—Cosmos' development company—had sold 21,600 ETH, or $95 million.
Here’s the plan:
— Wolf 🐺 (@IamCryptoWolf) November 25, 2024
Bullish on $ETH until May, aiming for 10k.
Then, take profits and step back.
The real play is for 20k by the end of 2025.
Ride the early wave, then let the long-term gains roll in. pic.twitter.com/ScDVznnJ1e
Dayo Paul
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