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Tag: ETH price prediction

  • Ethereum Drops Below $4,000 – Analyst Points To 6 Factors Fueling The Selloff

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    Earlier today, Ethereum (ETH) slid below the psychologically important $4,000 level for the first time since August 8. The fall in ETH’s price can be attributed to a mix of macroeconomic, structural, and crypto-specific factors.

    Ethereum Dips Below $4,000, Analyst Explains Why

    According to a CryptoQuant Quicktake post by contributor Arab Chain, ETH’s latest descent below $4,000 can be blamed on a complex mix of factors. First, a strong US dollar, coupled with the Federal Reserve’s (Fed) cautious stance following its September rate cut, dampened risk appetite.

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    Furthermore, rising bond yields and the increasing risk of a US government shutdown have spooked investors, discouraging them from investing in risk-on assets, including cryptocurrencies like ETH.

    Second, the analyst points to the role of leverage in ETH’s latest dip. On September 22, more than $500 million in ETH longs were wiped out within 24 hours, resulting in the unwinding of high leverage that was building up in Q2 2025. During the sell-off, ETH whales faced close to $45 million in forced sales.

    In addition, low weekend trading volume and shallow order books enhanced ETH’s price swings. Notably, institutional investors turned to OTC redemptions, following the Fed meeting to reduce their exposure to ETH.

    From a technical perspective, ETH failed to decisively break through the stiff resistance near $4,500 – $4,600. Failure to defend the $4,200 support worsened things for ETH, turning the momentum sharply bearish.

    The fifth reason was regulatory headwinds surrounding digital assets, especially the uncertainty around MiCA in the EU and US crypto legislation. ETH exchange-traded fund (ETF) outflows worth $76 million weighed on investor sentiment.

    Finally, a surge in validator exit queues and reduced staking inflows weakened natural buy-side support. Other factors, such as seasonal weakness and Bitcoin’s (BTC) rising dominance in the market, contributed to ETH’s sell-off. Arab Chain concluded:

    While this correction reflects structural positioning and macro forces rather than a broken thesis, volatility may persist until liquidity returns and regulatory clarity improves.

    Will ETH Stage A Recovery?

    While the momentum is against ETH currently, some analysts are optimistic about a turnaround in ETH’s fortunes in the coming months. For instance, ETH’s CME futures open interest is inching closer to new highs, setting a new potential target for ETH of $6,800 by the end of 2025.

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    Similarly, the surge in ETH contracts throughout the year has some analysts convinced that the digital asset may soon embark on a rally to $5,000. ETH’s illiquid supply could further propel it to new highs.

    In his latest analysis, crypto commentator Ted Pillows predicted that the increase in global M2 money supply could pave the way for $20,000 ETH. At press time, ETH trades at $3,959, down 3.6% in the past 24 hours.

    Ethereum trades at $3,959 on the daily chart | Source: ETHUSDT on TradingView.com

    Featured image from Unsplash, chart and TradingView.com

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    Ash Tiwari

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  • ERC-404 Euphoria Push Ethereum Gas Fees To 8 Month High

    ERC-404 Euphoria Push Ethereum Gas Fees To 8 Month High

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    The new ERC-404 tokens have swiftly taken the spotlight, dominating the cryptocurrency market and consistently attracting interest from investors and traders. This surge in euphoria has led to a substantial increase in Ethereum gas fees, pushing costs to their highest levels in the past eight months. 

    Ethereum Gas Fees Skyrocket

    Ethereum gas fees have surged to record highs, reaching unseen levels since March 2023, when the average gas price peaked at 101.26 Gwei. The sudden spike in Ethereum gas prices has been attributed to the recent hype surrounding ERC-404 tokens, an experimental token standard that enables native fractionalization of Non-fungible Tokens (NFTs). 

    Presently, reports from Etherscan, an Ethereum block explorer and analytics platform, reveal that on Friday, February 9, 2024, Ethereum gas fees reached an average gas price of 71.4 Gwei, with a maximum and minimum gas price of 59,956 Gwei and 34.4 Gwei respectively.

    This price is the highest Ethereum gas fees have reached since its explosive peak in May 2023, when the average gas price surged to 155.8 Gwei.

    Ethereum gas fees are on an uptrend. Source: Etherscan

    The popularity of the ERC-404 can be attributed to the Pandora team heralding the unofficial token and taking advantage of its high liquidity. Additionally, various cryptocurrency traders have shown immense interest in the new token, aiming to capitalize on its potential and maximize its liquidity.

    One trader recently made $59,000 from the popular ERC-404 token. He revealed that his “secret to making money” was buying and selling the ERC 404 token, MINER, using the high gas fees as an advantage. 

    The co-founder of Gaslite GG, identified as ‘Pop Punk’ on X (formerly Twitter), has also predicted that introducing ERC-404 tokens will lead to a continuous daily rise in the average Ethereum gas price. 

    About The ERC-404 Token Standard

    Earlier Thursday, the market capitalization of ERC-404 tokens soared to $296 million, announcing their arrival in the crypto market. The token standard was launched on February 5 and has gained immense traction in crypto. 

    Although ERC-404 tokens remain unofficial due to the absence of a complete audit and endorsement by Ethereum developers, they have witnessed a significant surge in the days following their launch. One of the prominent ERC-404 tokens, Pandora, recently saw a rise of over 400%.

    The experimental tokens have gained widespread popularity due to their unique approach of bridging the gap between fungible and non-fungible tokens for better liquidity and fractionalization. 

    ethereum eth ethusdt erc-404
    ETH’s price trends to the upside on the daily chart. Source: ETHUSDT on Tradingview

    Chart from Tradingview

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Ethereum Bulls May Propel Price To $3,100, Analyst Suggests

    Ethereum Bulls May Propel Price To $3,100, Analyst Suggests

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    Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past month. The recent bullish rush in the crypto market, coupled with BlackRock’s involvement, has pushed ETH to its year-to-date high of $2,139.

    Ethereum Outshines Bitcoin And Altcoins

    According to market data provider Kaiko, ETH has outperformed BTC and many altcoins in recent weeks, signaling a shift in market dynamics.

    Kaiko’s report highlights how ETH struggled to gain momentum over the past year, despite successful upgrades such as The Merge in April. 

    However, the sentiment around ETH changed dramatically when BlackRock filed for a spot ETH exchange-traded fund (ETF), leading to a reversal in the ETH to Bitcoin (BTC) ratio.

    The impact on the market was substantial, with ETH prices surging above $2,000 for the first time since April. Additionally, daily spot trade volumes reached $7 billion, the highest level since the collapse of FTX. 

    ETH’s daily spot trading volume surged to $7 billion. Source: Kaiko

    The ETH ETF narrative provided further impetus to the ongoing rally, amplified by improved global risk sentiment and declining US Treasury yields.

    The dominance of altcoin + ETH volume relative to BTC has risen to 60%, marking its highest level in over a year. During bull rallies, altcoin volume typically increases relative to BTC. 

    This surge in demand has also led to rising leverage, as reflected in the recovery of ETH open interest to early August levels. Notably, BTC open interest has declined over the past month due to liquidations on Binance, resulting in the Chicago Mercantile Exchange (CME) outpacing Binance as the largest BTC futures market.

    Furthermore, ETH funding rates, a gauge of sentiment and bullish demand, have reached their highest levels in over a year, indicating a significant shift in sentiment. In November, both BTC and ETH 30-day volatility rose to 40% and 50% respectively, following a multi-year low of around 15% during the summer months.

    Crypto Expert Predicts ETH Breakout

    Renowned crypto expert Michael Van de Poppe believes that ETH is on the cusp of a significant breakthrough. According to Van de Poppe, if Ethereum manages to surpass the crucial $2,150 resistance level, it could signify the end of the bear market. 

    Drawing a parallel with Bitcoin’s critical $30,000 barrier, Van de Poppe suggests that breaching this level could pave the way for a substantial rally, potentially propelling Ethereum towards the price range of $3,100 to $3,600. 

    Ethereum
    ETH’s 2.5% price surge over the past 24 hours on the daily chart. Source: ETHUSDT on TradingView.com

    However, Ethereum has yet to touch the $2,150 resistance line, as it faces a pre-existing obstacle in the form of its yearly high of $2,139. This pivotal level has halted the cryptocurrency’s bullish momentum, acting as a formidable resistance. 

    As a result, Ethereum has been consolidating within a narrow range between $2,050 and $2,100 for the past three days.

    The forthcoming days will reveal whether Ethereum can overcome its immediate resistance levels and establish a consolidated position above them. Alternatively, it may face a fate similar to Bitcoin, which failed to surpass the $31,000 level for over seven months before reaching its current trading price of $36,000.

    Featured image from Shutterstock, chart from TradingView.com

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    Ronaldo Marquez

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