Ethereum Price Target Lowered to Below $6,000 as Pullback Risks PersistIn a nutshell, Glassnode's on-chain data reveals that the current cycle's peak target for Ethereum has now been lowered to below $6,000. This downward revision contradicts earlier predictions, primarily driven by waning ETF inflows and selling pressure
Ethereum Price Target Lowered to Below $6,000 as Pullback Risks Persist
In a nutshell, Glassnode's on-chain data reveals that the current cycle's peak target for Ethereum has now been lowered to below $6,000. This downward revision contradicts earlier predictions, primarily driven by waning ETF inflows and selling pressure. In the near term, ETH price faces the risk of losing support at $2,455, potentially plummeting to $2,186.
For much of the past year, the prevailing sentiment within the market was that Ethereum (ETH) price could soar into the five-figure territory. However, with Bitcoin (BTC) exhibiting a strong performance in 2024 while ETH lagged behind, market analysts have begun to reassess their predictions. With ETH struggling to keep pace with Bitcoin's ascent, the initial optimism surrounding ETH reaching $6,000 has been significantly diminished. Indicators across the board suggest that a more moderate outlook may be appropriate for the current cycle.
Investor preference for Bitcoin over Ethereum has dampened the earlier bullish sentiment surrounding ETH prices. For instance, Bitcoin ETFs attracted a whopping $1 billion in inflows this week, demonstrating significant institutional interest. In contrast, Ethereum ETFs garnered only $5 million on October 17, indicating a preference for Bitcoin over Ethereum among institutional investors. Further adding to the bearish sentiment surrounding altcoins, data from CryptoQuant reveals that the Coinbase premium index, which tracks buy and sell pressure, has recently dipped into negative territory. This suggests that more investors are selling ETH rather than buying, further exacerbating the bearish market sentiment.
PiCycleTop had predicted that Ethereum could rise to over $6,000 before the end of this bull run. However, a series of shifts in factors have made achieving this prediction more challenging. PiCycleTop, historically regarded as a reliable tool for forecasting cryptocurrency peak prices within specific periods, utilizes the 111-day Simple Moving Average (SMA) and 350-day SMA to predict this peak. At present, Ethereum trades at $2,603 while the 350-day SMA (purple line), signaling the potential peak, sits at $5,699. This implies that ETH may struggle to break through this price range in the short term, facing challenges for further significant gains.
Underlying the diminished upside potential for Ethereum prices is a potential waning of investor enthusiasm for the asset, particularly in comparison to Bitcoin. This fading enthusiasm is reflected in various aspects, including ETF inflows and exchange premium index.
ETH Price Outlook: Pullback Continues
Ethereum's current trading pattern strongly resembles the price action witnessed in May and November 2021. On the weekly chart, whenever such situations arise, ETH prices tend to experience double-digit declines. For instance, in May 2021, the altcoin's price plunged by 52%. Under a similar technical backdrop, ETH price dropped by 45% in November. Currently, ETH relies on the $2,455 support level to prevent a repeat of this downward trend. However, subdued trading volume suggests that this support may struggle to hold in the long term. Should the support level be breached, ETH price could further slide to $2,186.
Of course, should investor interest in Ethereum reignite, this pessimistic outlook may not materialize. Instead, ETH could potentially rebound to $3,814 in the medium to long term.
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