Ethereum, the world's second-largest cryptocurrency, has been on a rollercoaster ride recently, falling below the psychologically important $3,000 threshold only to claw its way back up. Ethereum price movement It was a confusing mix of bullish and bearish signals.
Bullish whispers: new investors and short-term booms
A glimmer of hope has emerged for Ethereum bulls with the recent surge in new addresses on the network. according to Glassnode dataHowever, the number of new Ethereum addresses has risen significantly, surpassing 160,000 – a stark contrast to the sub-100,000 lows seen in January.
This influx of new users indicates growing interest and potential investment in Ethereum, even in the midst of its recent struggles.
Source: Glassnode
Moreover, technical indicators on the 4-hour chart point to a short-term upside potential. Analysts at NewsBTC The price indicates increased volatility, indicated by widening Bollinger bands, which could pave the way for a temporary price rise. The aim of this strategic move by the market may be to attract buyers before the prevailing downtrend resumes.
Bearish Shadow Looms: Market Sentiment and Technical Trends
However, the elation may be short-lived. Overall market sentiment surrounding cryptocurrencies remains decidedly negative, a trend that has continued since April's long-awaited Bitcoin halving event failed to generate a significant market surge, data from Santiment shows, signaling investor caution despite a brief price rebound.
😒 Feelings towards #encryptionCapped assets are still somewhat negative. This has been the case since April 19 $ Bitcoin #Half It did not immediately lead to a higher market value all the time #Cryptocurrency. As uncertainty rises, leakage of small portfolios from the sector may… pic.twitter.com/7FXYheGnX0
— Santiment (@santimentfeed) May 9, 2024
To add fuel to the bearish fire, Ethereum's daily chart continues to paint a blurry picture. Technical analysts point to continued breakouts in the price structure towards the downside, indicating a possible continuation of the downtrend. Even the Relative Strength Index (RSI) is at a low of 40, reinforcing the downtrend sweeping the market.
Ethereum is now trading at $2,904. Chart: TradingView
Chart patterns and breakout potential: a neutral view
Amid the mixed signals, veteran trader Peter Brandt offered a more neutral view. Analyzing the Ethereum price chart, which he described as “interesting,” Brandt identified two potential technical patterns: a flag and a channel.
Ethereum $ Ethereum It became a very interesting chart for me
The pattern is too long to be considered a label, but the channel is the most likely label
I could go in any direction with this chart pic.twitter.com/EeSa7SyAmA– Peter Brandt (@PeterLBrandt) May 9, 2024
While a flag usually indicates a continuation of the current trend after a short pause, a channel allows price movement within a specified range. The uncertainty surrounding the exact pattern indicates the possibility of a breakout in either direction, making Ethereum's immediate future uncertain.
Ethereum: The way forward
With mixed technical signals and a market surrounded by negativity, Ethereum's future path remains shrouded in uncertainty. While short-term price increases are possible, the long-term trend tends to be down.
The coming weeks will be crucial for Ethereum, as it navigates these turbulent waters and attempts to chart a clear course in the coming weeks or months.
Featured image from Pexels, chart from TradingView
