Ethereum Price Drops Over 7% But Bullish Indicators Emerge
The price of Ethereum (ETH) dropped over 7% on Thursday, nearing the $2,400 mark. Despite this decline, analysts suggest a potential bullish trend may emerge.
Indicators of Accumulation by Large Investors
- Market analyst Lark Davis noted various on-chain metrics indicating an impending breakout for ETH.
- Ethereum outperformed Bitcoin in Q2, signaling increasing investor confidence.
- The recent Pectra upgrade enhanced Ethereum's scalability and reduced its inflation rate.
- Exchange balances are at seven-year lows with significant inflows into Ethereum ETFs, suggesting accumulation by larger investors.
- However, betting markets show only a 27% chance for Ethereum to reach a new all-time high by 2025.
Support Levels Amid Market Challenges
- The total cryptocurrency market capitalization fell from $3.30 trillion to approximately $3.12 trillion.
- Other cryptocurrencies, including XRP and Solana (SOL), also experienced losses.
- Tensions between US political figures Trump and Musk have contributed to market volatility.
- Analysts identified the $2,390 level as critical support for Ethereum, influencing potential upward targets of $3,000 and $4,000.
- Currently trading at $2,406, Ethereum remains 50% below its all-time high of $4,878.
