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Market Expert Highlights Top Coins To Watch As Ethereum (ETH) Reaches 22-Month High

Market expert Miles Deutscher has identified several key trends and developments in the cryptocurrency market, particularly focusing on the Ethereum (ETH) rally and its implications for Layer-2 (L2) decentralized finance (DeFi) altcoins. 

Deutscher highlights that ETH’s recent surge to a 22-month high of $3,130 has sparked increased interest in L2/DeFi altcoins, presenting potential opportunities for investors.

Ethereum Price Strength Continues

In a recent post on social media X (formerly Twitter), Deutscher notes that Ethereum continues to show strength, especially compared to Bitcoin (BTC), which remains in a key consolidation phase at $51,100. Holding above the significant psychological level of $3,000, ETH’s bullish momentum is further fueled by reports of Justin Sun, the founder of TRON, purchasing over $500 million worth of ETH in recent days. 

Deutscher remains optimistic about ETH and ETH-betas leading up to the proposed exchange-traded fund (ETF) dates in May and the upcoming Dencun upgrade in March. There are also potential indications of ETH/BTC breaking out, with investor Andrew Kang actively increasing his ETH long position.

First, on his altcoins watchlist, Deutscher highlights the fee switch proposal underway at Uniswap (UNI). This US-based decentralized crypto exchange has seen notable price gains of over 37% in the past week, which could have significant implications for the entire industry from a regulatory standpoint.

Notably, the analyst believes that this development could potentially trigger a broader rotation into other DeFi 1.0 tokens such as Curve DAO (CRV), Compound (COMP), Aave (AAVE), and Frax Share (FXS), THORchain (RUNE), GMX, as investors seek to capitalize on the DeFi landscape.

Moving on to another altcoin that could see a price spike, Deutscher suggests that this week’s anticipated launch of Blast L2, founded by the same individual behind BLUR, presents an opportunity for BLUR stakers to receive tokens from the airdrop and potentially be further integrated into the ecosystem. 

Deutscher suggests that BLUR provides an alternative way to gain exposure to the Blast project, which has garnered bullish sentiment from numerous funds and thought leaders.

Following the positive news surrounding Uniswap, DYDX has been on the rise, with the token seeing a 7% increase in price over the last seven days. However, Deutscher cautions that a significant unlock is expected this week, which may tempt some recipients to sell, potentially causing a temporary dip in price.

Next in the spotlight, speculation surrounding the upcoming launch of Aevo (AEVO), which will allow developers to launch their protocols on its rollup and introduce an incentive program, is growing and generating interest in Ribbon Finance (RBN).

Given these developments, Deutscher notes that the prospect of pre-markets and IOU markets gaining “massive” attention and the recent record $4 million in fees positions RBN within an exciting narrative.

Deutscher’s Insights Point To Promising Trends

Following Deutscher’s mention of COTI last week, the coin has seen over 100% growth, breaking through key resistance levels. With the launch of their new privacy-enhancing L2 coinciding with the upcoming Ethereum Dencun upgrade, Deutscher notes that the protocol is in a favorable position for further price growth in the market.

On the other end of the spectrum, Deutscher acknowledges the rapid pace of market rotation and suggests keeping a close eye on Artificial Intelligence (AI) coins, which, as reported by NewsBTC, have seen significant gains with the hype surrounding AI projects such as Worldcoin (WLD).

Finally, with signs of life emerging over the weekend, according to the analyst, Rollbit Coin’s (RLB) burn mechanics position it as a leader in the “Rev Share/Real Yield” narrative. With the market potentially entering an “explosive bull run,” Deutscher believes the casino/gambling narrative could gain traction, benefiting projects like Rollbit, which has also seen gains of over 7% in the past 24 hours.

Ethereum

Featured image from Shutterstock, chart from TradingView.com

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Ethereum Dencun Upgrade Launch Boosts ETH Price, Eyes 90% Fee Reduction

Ethereum (ETH) has made significant strides in its 2024 roadmap with the successful launch of the Dencun upgrade on the final Holesky testnet. 

This is seen as a crucial step towards deploying the upgrade on the mainnet, signaling Ethereum’s progress in improving transaction efficiency, and scalability and reducing transaction fees by up to 90%. As a result, ETH has surged 2.9% in the last 24 hours, breaking its previous downtrend.

Ethereum Dencun Upgrade

The Dencun upgrade was first activated on the Sepolia testnet in January 2024, following its deployment on the Goerli testnet. This upgrade aligns with Ethereum’s broader strategy to enhance scalability and reduce transaction costs for its users. 

Introducing the concept of “proto-danksharding,” Dencun aims to decrease transaction costs for layer-2 blockchains and address scalability challenges, paving the way for the eventual implementation of “danksharding” for further benefits.

Once fully implemented, Dencun is expected to significantly increase Ethereum’s transaction processing capacity, potentially enabling the network to handle over 100,000 transactions per second. According to the network’s development team, this scalability enhancement is crucial for supporting the growing ecosystem of decentralized applications (dApps) and users on Ethereum.

Furthermore, Dencun will have notable technical improvements, such as the introduction of ‘blobs,’ which reduce the cost of rollups on the Ethereum mainnet by compressing transaction data off-chain. 

By caching data needed for short-term transaction verification, blobs aim to minimize storage and processing requirements, further enhancing the network’s transactional capabilities.

Anticipation For ETH’s Market Impact

The successful implementation of the Dencun upgrade holds the potential for significant implications on ETH’s market value, driven by a combination of factors.

Firstly, the upgrade’s enhanced network capabilities, including boosted transaction processing capacity and reduced costs, are expected to attract more developers and users to the Ethereum ecosystem. 

With improved scalability and lower transaction fees, Ethereum could become a more attractive platform for building dApps and conducting transactions. This increased utility and demand for Ethereum could have a positive impact on its market value as more participants seek to acquire ETH tokens.

The perceived reliability and forward momentum resulting from the successful implementation of Dencun may attract more investors to consider Ethereum as an investment opportunity. The increased interest and demand for ETH tokens driven by this positive sentiment can contribute to potential price appreciation.

Lastly, the anticipation of Dencun’s benefits and the reactions to its successful implementation may lead to short-term price volatility, with investors adjusting their positions based on their expectations of how the upgrade will impact Ethereum’s functionality and market position.

All of these developments could have a significant impact on ETH’s price trajectory and position the token in a long bullish trend, if this momentum continues to be capitalized on, the next barrier at $2,450 could be easily surpassed, potentially sending ETH to new highs. 

While the long-term implications remain to be seen, this is a positive development for ETH bulls as the network has lacked significant catalysts and has been involved in a significant price correction for the past 3 weeks.

With activations on the Sepolia and Goerli testnets already completed, the final testnet deployment, Holesky, was initially scheduled for February 7, 2024. However, it has now been rescheduled for March 2024. 

Ethereum

Featured image from Shutterstock, chart from TradingView.com

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Ethereum Return To $4,800: Analyst Identifies Pattern To Trigger Rally To ATH

The Ethereum price has been trading more than 50% below its all-time high of $4,800 for the better part of a year now with no sign of returning to its previous all-time high. However, this slow trend may not continue for much longer as a crypto analyst has identified a pattern that could trigger a rally to its previous highs.

Ethereum Stuck Inside A Bullish Triangle

In an analysis that was posted on TradingView, crypto analyst FieryTrading identified a unique pattern that the Ethereum price has been trading in for almost two years. This pattern is a bullish triangle pattern and it has persisted for more than one and a half years.

Looking at the chart, the Ethereum price has not deviated from this bullish triangle and has not had any success breaking out of it. The triangle began toward mid-2022 when the Terra Network collapse triggered a crypto market-wide crash. Then even with multiple major recoveries since then, the altcoin’s price remains inside this triangle.

Ethereum price chart from Tradingview.com

The lower end of this bullish triangle is at $887 which is the cycle low, and the upper end has been tracked at just above $2,100. Given this range, it suggests that for Ethereum to break out of this bullish triangle, it would have to clear the $2,200 resistance.

What Happens If ETH Breaks Out Of This Pattern?

As the crypto analyst highlights, a breakout of this pattern would lead to a massive rally. The top of this breakout rally could eventually see the Ethereum price return to its 2021 all-time high levels, reaching above $4,800.

Ethereum price chart from Tradingview.com (crypto analyst)

“In my eyes, a break out from this pattern might result in big gains for ETH, since it will burst through an area full of short-trade stop-losses which will be forced to buy back their positions,” FieryTrading said. A move to $4,800 would translate to a 130% increase from its current price levels.

However, the crypto analyst explains that this could be more of a long-term performance, so it is possible that the cryptocurrency will not complete this move until at least the year 2024. But it paints a good, bullish picture for the altcoin going forward.

On its own this year, the Ethereum price has performed quite well, especially over the last 30 days. Data from CoinMarketCap shows that ETH’s price has risen 16.53% in one month to break above the $2,000 resistance which has now turned into support.

Ethereum remains the second-largest cryptocurrency with a market cap of approximately $250 billion.

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

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. 

Ethereum

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

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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Best Time to Buy Ethereum Could Be Soon: Last Cycle Suggests

Ethereum has been in a descending channel against Bitcoin since August of last year, meaning Bitcoin has been the better investment over this time. However, historical trends show the tides could be changing soon, with Ethereum possibly on the brink of entering an accumulation phase.

Ethereum Price Action

Ethereum is trading at $1600, marking a 22% decrease from its price last August. Bitcoin, on the other hand, is 8% up over the same period.

This is a common trend that happens during bear markets. Coins with larger market capitalizations tend to be more resilient against price decreases as investors become more risk-averse and look to preserve their capital. While Ethereum isn’t short at a market capitalization of $187 billion, it’s still considerably lower than Bitcoin at $525 billion.

During bull markets, coins with lower market capitalization outperform Bitcoin again as investors lean towards assets with greater potential returns.

Ethereum Price Compared Against Bitcoin

When comparing ETH’s value to BTC, it’s evident that Ethereum has been trading within a descending channel since last August. This pattern, characterized by its lower highs and lower lows, often indicates a bearish trend in the market.

 

The chart above highlights three other distinct phases:

Accumulation phase: During this phase, price tends to stabilize, hinting at an upcoming change in momentum

Ascending channel: Here, the price experiences a significant reversal, often on a parabolic trajectory, characterized by highs and higher lows.

Distribution phase: In the final phase, the price ceases its upward movement. Investors typically use this phase to capitalize on their gains and liquidate their positions.

The accumulation phase is typically the best time for investors to convert their Bitcoin into Ethereum. This phase is marked by price holding on at the bottom and then showing signs of reversal. Ethereum is still forming lower lows against Bitcoin, so it has not entered the accumulation phase yet. However, the last cycle shows that this could be changing soon.

Last Cycle

Reflecting on the last cycle, Ethereum was in a descending channel against Bitcoin for 17 months. The accumulation phase then occurred from September 2019 up until February 2020. Based on the four-year theory, which suggests similar phases in the market occur every four years, this shows that the accumulation phase should also be approaching very soon in this cycle.

Yet, while the last cycle offers valuable insights, it’s important to note that no two cycles are the same. In the current cycle, ETH’s price action has not seen as much of a drop as in the previous cycle, which could be attributed to changing fundamentals and asset maturation.

Final thoughts

While an accumulation phase for Ethereum has not been confirmed yet, there remains the potential for its price to drop even further relative to Bitcoin. However, if the previous cycle is anything to go by, we could enter the accumulation phase soon. This phase typically presents prime buying opportunities for Ethereum.

Investment Disclaimer: The content provided in this article is for informational and educational purposes only. It should not be considered investment advice. Please consult a financial advisor before making any investment decisions. Trading and investing involve substantial financial risk. Past performance is not indicative of future results. No content on this site is a recommendation or solicitation to buy or sell securities or cryptocurrencies.

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Here’s Why The Ethereum Price Fell Toward $1,500

The price of Ethereum has experienced a notable decline following a major Ether sale this week. The unexpected decrease has left the crypto community anxious about the stability of the world’s second-largest cryptocurrency and the long-term effects of the decline. 

Ethereum Price Drops After Large-Scale Ether Swap

On Monday, October 9, the price of Ethereum declined following an extensive Ether swap by the Ethereum Foundation, a non-profit community-run organization dedicated to enabling better human coordination. 

The Ether transaction which took place on Uniswap, a decentralized crypto exchange platform, saw the ETH price drop 5% from its daily high of $1,635 to a local low of $1,553 before recovering once more.

According to Arkham data, the Ethereum Foundation swapped approximately 1,700 ETH worth $2.7 million to a single wallet address which contained almost $400,000 worth of cryptocurrencies and was titled ‘Grant Provider’ by Etherscan.

The specific intentions behind the large-scale swap have not been disclosed by the Ethereum Foundation. However, the Ethereum Foundation, an organization that holds a considerable influential position, regularly swaps large amounts of tokens to fund its operations. 

Presently, Ethereum is trading at a price value of 1589.36 after recovering from the initial decline. The steep decline has left the crypto community worried about the health of the cryptocurrency and whether the price of Ethereum would recover. 

Ethereum price chart from Tradingview.com

ETH Whales Dump $8.5 Billion

The Ethereum Foundation has not been the only large wallet to sell in recent times as other ETH whales have taken advantage of the altcoin’s price. According to crypto analyst Ali Charts on X, ETH whales dumped a whopping $8.5 billion worth of tokens.

This large selling started in February this year and has continued into October. As a result, the whale selling has seen over 5 million ETH sold and redistributed over this 8-month period. The analyst also points out that “this selling trend continues with no current indication of a shift towards #ETH accumulation yet.”

Ethereum price whales

Compared to its all-time high of $4891.70 in 2021, the price of ETH has dropped by more than half and has been struggling to reclaim the $2,000 mark. However, this could present a unique buying opportunity for investors who could see the price decline as ETH being on discount. 

Nevertheless, Ethereum continues to hold its position as the second-largest cryptocurrency in the market with a market cap of $191.5 billion at the time of writing. Over the last day, the altcoin has also seen some recovery, rising to $1,593 as bulls gear up to retest the $1,600 resistance.

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Ethereum Open Interest Barrels Past $5.2 Billion, Is It Time To Buy?

The Ethereum open interest has been on an upward trajectory that has culminated in it crossing the $5.2 billion mark. This surge is important to Ethereum’s native token ETH in a number of ways as it could point to how investors are viewing the cryptocurrency at this point.

Ethereum Open Interest Sees Rapid Rise

Data from Coinglass shows that the Ethereum open interest has risen rapidly in recent times. Over the last week, the open interest has grown, eventually crossing $5.2 billion at a time when the crypto market continues to struggle to loosen the grip of bears.

One thing about open interest is that it can point to how investors are viewing the cryptocurrency and whether they are bearish or bullish. When open interest rises, it points to investors becoming more bullish. On the other hand, a drop in open interest suggests that investors are more bearish and expect prices to drop.

Ethereum open interest

This time around, with the open interest being on the rise, it suggests that crypto investors are turning bullish once more. This reflects the Crypto Fear & Greed Index showing that investor sentiment has been improving during the same time period.

The chart above shows that the ETH price has often rallied when open interest has surged, which could happen in this case. If this holds true, then the ETH price could be looking at a rise toward the $1,700 level once more.

ETH Could Rally With Crypto Market

The turn to bullishness marked by the increase in Ethereum open interest is not limited to the cryptocurrency alone. Looking at the long/short ratio on Coinglass shows that long volumes have begun to recover while short volume has plummeted.

Ethereum long volumes are currently sitting at $574 million compared to $548 million for short. This comes out to 51.28% for longs with 48.72% for shorts. And while these differences are not especially significant, it does show that crypto investors are betting more on a recovery for the cryptocurrency.

Liquidations have also shown that short traders are losing more in the market. Ethereum currently has a 24-hour liquidation volume of $6.63 million. $1.57 million of this is long positions while $5.06 million is accounted for by short traders.

The ETH price is sitting at $1,588 at the time of writing. It’s seeing small gains of 0.84% in the last day but nursing 3.59% losses on the weekly chart.

Ethereum price chart from Tradingview.com (Open interest)