June Month was notably bearish for the cryptocurrency market with many assets revisiting their monthly support. Amid the market sell-off, the Ethereum price plunged from a high of $3887 to a low of $3232 registering a loss of 16.9%. However, the downfall lies within the healthy retracement of Fibonacci tools indicating a strong could allow ETH bulls to counterattack.
Also Read: Crypto Market This Week: Ethereum ETF, FOMC Minutes, US Job Data & Trade Deficit
Ethereum Price Eyes Stability as 78% of ETH is Held by Long-Term Holders
The near-term trend in Ethereum price is sideways evidenced by a new lower high formation at $3975 in late May. This reversal indicates the overhead supply is high from market sellers and ETH buyers would need time to recuperate its momentum.
Connecting the overhead peaks with a trendline reveals a potential triangle formation as the altcoin has also received dynamic support from an ascending trendline since October 2023.
The Ethereum price currently trades at $3389 and holds a market cap of $407.3 Billion. If the supply pressure persists, the coin price could plunge another 5% to seek support at the long-coming trendline.
The renewed buying pressure from the trendline could uplift the asset by 14-15% and challenge the triangle’s upper boundary at $3860. A bullish breakout from the triangle pattern will signal a better confirmation of uptrend continuation.
Also Read: ETH/BTC Pair Poised for Breakout as Ethereum ETF Launch Approaches: What’s Next?
In a recent tweet, the prominent crypto analytics firm IntoTheBlock revealed a striking statistic: 78% of Ether is currently held by long-term holders. Despite the volatility in Ethereum’s price, the proportion of ETH held by long-term investors has steadily increased, indicating a strong belief in the asset’s future value.
78% of ETH is owned by long-term hodlers pic.twitter.com/9vb5kaUIar
— IntoTheBlock (@intotheblock) June 28, 2024
Ethereum’s price performance in July has exhibited a mix of gains and declines over the past several years, reflecting the broader market’s volatility and investor sentiment. The biggest gain was +56.62% in 2022, while the largest drop was -27.29% in 2017.
On average, July has a positive return of +6.95%, though the median return is -4.41%, indicating mixed performance.
However, with the ongoing development around U.S-listed Ethereum ETFs, anticipated to launch around mid-July, the odds strongly lean on buyers’ favor.
Technical Indicator
- BB Indicator: An upswing in the lower boundary of the Bollinger Band indicator losing bearish momentum and additional support for buyers to rebound.
- Moving Average Convergence Divergence: A negative crossover between the MACD and signal line highlights the near-term trend is intact and bearish.
Related Articles
This news is republished from another source.
