Ethereum Price Drops Over 3% Amid Bullish Recovery Attempts
After a 30 percent surge, Ethereum price (#ETH) has experienced a correction over the past four days. The altcoin, with a market cap of approximately $373 billion and a daily trading volume around $36 billion, fell over 3 percent in the last 24 hours, trading slightly above $3,100 on November 15, 2024.
Technical Analysis
On the four-hour chart, Ether is forming a falling wedge, indicating the end of the second phase of the Elliott Wave Theory. Ether needs to close consistently above the short-term resistance level of $3,156 to validate a potential rally beyond $4,000.
The ETH/BTC pair's daily chart shows it retesting a crucial support level at 0.0347. A potential reversal pattern, along with a rising divergence in the Relative Strength Index (RSI), suggests that if Bitcoin dominance retraces from the current resistance between 60 and 61 percent, Ether could rebound towards its all-time high, possibly triggering an altseason.
If a sustained selloff occurs, Ether may find strong support around $2,950.
Ethereum Whales Unwavered
On-chain data from Santiment indicates that Ethereum whales purchased over 430K Ether, valued at more than $1 billion. In the past 24 hours, Ether supply on centralized exchanges decreased by over 13K, highlighting increased demand from whale investors.
U.S. spot Ethereum Exchange-Traded Funds (ETFs) have been significant buyers, accumulating over $740 million in the past three weeks. On Thursday, BlackRock’s ETHA and Invesco’s QETH recorded net cash inflows of approximately $18.87 million and $929K, respectively. Grayscale’s ETHE saw the highest outflow at about $22 million, resulting in a total net inflow of approximately $3.24 million for U.S. spot Ether ETFs on Thursday.
Market Picture
The Ethereum network attracts institutional investors aiming to tokenize real-world assets such as stocks, bonds, and real estate. It remains the largest DeFi ecosystem with a total value locked of about $57 billion and a stablecoins market cap exceeding $93 billion, despite competition from other layer one chains like Solana (SOL).
Ethereum’s layer two scaling solutions enhance its competitiveness against other blockchains due to low costs, a vibrant community, and strong security.