Ethereum has been facing challenges in holding onto its top spot in the market among altcoins. The bears causing the global cryptocurrency market decline are also dominating ETH. After dropping more than 11% in the last month, it appears the coin is loosing ground to Bitcoin. With the Bitcoin halving event on the horizon for April 20, 2024, the crypto community is eagerly anticipating whether the price of Ethereum will see a rebound. Let’s explore thoroughly to discover the potential.

Market Performance of Ethereum Price

In the last 24 hours, Ethereum experienced a 5.19% drop in its price, falling to $3,086.39. The significant drop in its market performance has also been highlighted by the significant decrease of ETH, by 14.27% and 11.36% in the last week and month respectively.
According to CoinMarketCap, Ethereum holds the title of the second largest cryptocurrency with a market capitalization of $371.15 billion. Moreover, the coin experienced a drop of around 5.86% in its trading volume, reaching $21.77 billion, in the last 24 hours. This decrease shows lower liquidity and trader interest in the coin.
ETH price reached its highest point at $4,891.70 on November 16, 2021. After that, Ethereum has experienced a decrease of around 36.67% reaching the current price.

Factors Determining the Recovery of Ethereum Price

Various factors play a role in the recovery of ETH price as discussed below.

1. Bitcoin Halving

Bitcoin Halving might also impact the rise in ETH trading price. The event that takes place after every four years, has a notable effect on the cryptocurrency market. It could impact the Ethereum (ETH) price in different ways. Initially, the halving decreases the amount of new coins being introduced into circulation. This limited availability may result in higher demand as investors look to spread out their investments. If the price of Bitcoin increases after the halving, Ethereum and other cryptocurrencies are expected to also see price hikes because of the increased interest in the market.
Also, Bitcoin halvings result in excitement and speculation within the investment community. This feeling can also affect other cryptocurrencies. Anticipating positive impacts from Bitcoin halving, individuals might choose to invest in other cryptocurrencies such as Ethereum, leading to an increase in their value.

2. Ethereum ETFs

Increased attention from institutional investors and major companies in Ethereum may bring stability and boost the price. The potential launch of new spot Ethereum exchange-traded funds (ETFs) in May, 2024 could lead to a surge in Ethereum’s value, similar to the impact of Bitcoin ETFs. However, analysts are concerned about the SEC approval process, with the likelihood decreasing from 70% to 30% due to a lack of communication from regulators. Investors should be cautious about expectations surrounding the approval of Ethereum ETFs.

3. General Cryptocurrency Market Recovery

A recovery in the cryptocurrency market can result in Ethereum’s price bounce due to various factors. Firstly, as investor confidence grows with the market’s rebound, more individuals are likely to invest in Ethereum. Secondly, renewed capital inflows into cryptocurrencies typically include Ethereum due to its reputation and use cases. Additionally, Ethereum often follows Bitcoin’s trends, so when Bitcoin’s price rises during a market recovery, Ethereum’s price also tends to increase. Moreover, market liquidity and trading volume can rise during a recovery, leading to smoother price movements and potential upward pressure on Ethereum’s price. Furthermore, increased interest in blockchain technology and decentralized applications can drive further demand for Ethereum. Institutional investors may also be attracted to Ethereum during a recovery, contributing to its price growth.

4. ETH’s Price Forecast

Both the Exponential Moving Average (EMA) and Simple Moving Average (SMA) show that short-term periods of 10, 20, and 30 days are signaling a bearish trend based on technical indicators. The Ethereum price is below thes moving averages, showing the possibility of a price drop in the short-term.
Similarly the EMA and SMA for extended durations like 50, 100, and 200 days are also indicating a downward trend. indicating a bearish direction. The current price of ETH is below these moving averages, showing that the overall price movement of Ethereum remains bearish.
The MACD with 12 and 26 periods is giving a Buy signal, suggesting a possible short-term turnaround.

The MACD, which is a momentum indicator, calculates the variance between two moving averages, and the Buy signal could indicate a slight move towards an upward trend for ETH.
However, there is a Sell signal shown by the EMA across different time periods, ranging from 10 days to 200 days. This indicates that Ethereum’s price might keep experiencing downward pressure in the near to medium future. The RSI (Relative Strength Index) at 37.6 is in the neutral range. It indicates that ETH’s price is neither overbought or oversold, suggesting there may be potential for a price reversal if the RSI moves further towards either extreme.

On the downside, should the price of ETH, it will find support at $2698.5. Should the decline further past the level, it will find another key level at $2698.5. Any more losses might see the price drop further to $2361.2
If the bulls fail to protect the $2698.5 support, the price might decline toward $2361.2.
On the upside, the price is now facing resistance near the $3581.4 level and the trend line. The next major resistance is near the 3789.7 level. A clear move above this level of resistance could send the price toward $4127.

Conclusion

Despite facing hurdles and declines, Ethereum price shows indications of potential recovery and opportunities for a comeback. The future Bitcoin halving and possible introduction of Ethereum ETFs may have a positive effect on the price of Ethereum. Moreover, the collective rebound of the crypto market could help reverse the direction of Ethereum’s price movement. Investors need to monitor important support and resistance levels, alongside changes in technical indicators like RSI, EMA, and MACD, to detect any shifts in momentum. Ultimately, Ethereum’s future success will be influenced by various factors, making it crucial for investors to remain informed and prudent.

The post Ethereum Price : Will ETH Price Recover In 2024 ? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am