The Ethereum price plunged 3.5% during the U.S. market session on Tuesday, currently trading at $2500. This drop in ETH is in line with the broader crypto market pullback. However, the outlook for Ethereum (ETH) could improve in Q4 for a couple of reasons. October, in particular, could allow ETH to shine.
Is it Ethereum’s Time to Shine?
Yes, the historical price data for Ethereum shows a higher possibility for a bullish trend in Quarter 4. According to Coinglass data, ETH’s average return in Q4 stands at 20.8%. If history repeats, Ethereum could be in for a massive uptrend that could drive it beyond the $3,000 psychological level.
Additionally, Santiment data reveals that ETH whales holding between 100,000 and 1 million coins have been actively accumulating since August, bringing their total holdings to 20.8 million ETH.
Moreover, the Ether supply held by top addresses has strengthened significantly, with these major holders now controlling 44.17% of the total supply. The increasing concentration among large holders indicates their confidence in the asset’s future potential. A positive outlook these on-chain indicators have often conceded with major bottoms and potential reversal.
Why Ethereum Has Failed to Rally So far?
The ETH price is still 48% down from its all-time high of $4,891, compared to Bitcoin, which trades less than 15% of $73,750 ATH. The ETH underperformance in the Bitcoin rally can be attributed to interest in their respective exchanged traded funds (ETFs).
Robert Mitchnick, head of digital assets at BlackRock, speaking at the Messari Mainnet conference in New York, acknowledged the “underwhelming“ BlackRock’s Ethereum exchange-traded fund (ETHA), suggesting the narrative of Digital Gold favored Bitcoin.
However, the high correlation between Bitcoin and Ethereum, which earlier hindered the ETH’s independence rally, can now boost its price for a higher rally.
ETH Price Forecast:
a) ETH Price Longterm outlook forecasts $10k
In the long term, Ethereum has potential to reach $10,000. This forecast is grounded in ETH’s healthy retracement and whale accumulation to drive the forward rally. Concerning the seven-month correction, the FIB extension tool shows a rally to $7310, followed by an extruded rally to $10540.
b) Daily Ethereum price chart hints at $3.5k before 2024
The ETH price records a four-day fall from $2700 to $2500— a 7.56% drop— amid a broader market pullback. The overhead supply bolstered by the 100-day EMA slope hints at another reversal, maintaining a sell-the-bounce sentiment in the market.
With sustained selling, the Ethereum price could plunge 18% to reach the $2000 psychological level. This support, backed by a 61.8% Fibonacci retracement level and an ascending trendline intact since June 2022, indicates a high area of interest (AOI).
The bullish momentum recuperated at this support could boost the next recovery leap to $3000.
The post Is it Ethereum’s Time to Shine? 3 Reasons Why ETH Price Will Rally Soon appeared first on CoinGape.
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