After conducting a thorough analysis, it has been noted that ITC Crypto founder and CEO Benjamin Cowen has highlighted a wedge chart pattern that is currently evident in the market. This pattern resembles previous cycles in 2019 but on a much larger scale. Additionally, the ETH/BTC structure seems to have bottomed out following an interest rate cut in 2019, and history may repeat itself as an impending rate cut is expected next week. On the other hand, MN Consultancy founder Michaël van de Poppe has identified a bullish divergence, which remains valid with a recent higher low on the ETH chart. This could potentially signal a break in the downward trend and lead to a positive movement in the market.
Price Movement
ETH prices are currently up by 2.6% on the day, trading at $2,345 at the time of writing. Despite a recent dip to just below $2,200 on Sept. 7, ETH managed to bounce back from strong support levels. However, the asset has underperformed compared to its previous high in mid-March, dropping by 46%. One of the reasons attributed to Ethereum’s poor performance is the growing concern over diminishing network fees and an inflationary supply issuance. The recent support by Coinbase for EIP-4844 has been cited as a catalyst for the shift towards inflationary issuance and the subsequent drop in fees.
Network Growth
Moreover, Santiment, an on-chain analytics platform, reported that Ethereum has experienced a four-month high in terms of network growth. The creation of over 126,000 new wallets in a single day indicates a rising network utility and suggests positive market sentiment towards Ethereum. This surge in network activity has also influenced price action, with ETH prices rising by 7% since the weekend. The correlation between network growth and price movement is evident, highlighting the potential for a price reversal in the near future.
The cryptocurrency market, particularly the movement of ETH prices, is heavily influenced by technical analysis and network activity. As investors and analysts monitor key indicators and patterns, the potential for a positive reversal in the market becomes more apparent. It is essential to consider these factors when making informed decisions in the volatile world of cryptocurrencies.
Leave a Reply