Ethereum (ETH) has been struggling in the crypto market. Its daily chart confirmed the solid bearish sentiment. Genesis firm’s recent unloading of ETH to exchange is a potential catalyst for this bearish momentum.
Genesis moved 40,000 ETH tokens to two wallets, causing ETH to plummet significantly below its support level of $3,100. The position below support suggests that sellers are dominating, making it challenging for ETH to regain its strength.
Genesis Trading transferred 27,500 ETH to the address starting with 0xcbCF at 9:43 UTC+8 today, worth about $87.09 milliom, and transferred 12,500 ETH to the address starting with 0x72FE, worth about $39.59 million, suspected of executing bankruptcy liquidation procedures.…
— Wu Blockchain (@WuBlockchain) August 2, 2024
Many are speculating about further price declines based on this. This analysis will explore whether ETH can bounce back from this.
Ethereum Recent Price Movement
Ethereum’s price has been bearish since July 1. On July 05, the coin dropped from $3,479 to a low of $2,834, marking an 18.53% price decline. The next day, ETH recorded a bullish momentum that took it to $3,546 on July 15.
From July 15 to 24, ETH consolidated within the $3,400 level. However, on July 25, it dropped sharply to $3,100 and stayed there for a while.
Today, August 2, ETH faced intense selling pressure, taking its price to $3,050 and breaking its $3,100 support level. ETH trades at $3,034, representing a price dip of 2.31% in 24 hours. A decrease of 6.63% has also been recorded in the past seven days.
Despite this price decline, a known analyst shared a bullish price outlook for ETH.
ETH to Reach $4,000 Price Level, Says Analyst
On July 27, analyst RLinda shared insights about the ETHUSDT chart on TradingView. RLinda noted that bulls strive to keep ETH above a crucial support line.
This indicates strong buying interest at this level, which could lead to a future price increase. The Analyst mentioned that ETH’s price is experiencing a temporary dip.
According to his chart, the coin is currently testing important levels, including the 0.5 Fibonacci level and the 200-day MA, to see if it can hold.
RLinda suggested that while the dip might seem significant, it could set up a price rally. Consequently, RLinda predicted that ETH could surge to $4,000 soon.
This analysis gives the community hope, as the strong buying interest and support levels hint at a potential rebound. The community can look forward to a possible surge. But first, the price needs to break above critical levels.
Ethereum’s Bearish Crossroads: Technical Analysis Signals Caution
Ethereum’s price is currently facing intense bearish pressure. Several technical indicators point to a negative sentiment in the market. The price is trading below the 50-day and 200-day Simple Moving Averages (SMA), which could indicate further downside.
The Relative Strength Index (RSI) hovers around 30. This low reading indicates oversold conditions. While it might suggest a potential bounce, it also reflects the strong selling pressure Ethereum faces.
Supporting the bearish view is the Moving Average Convergence Divergence (MACD). It’s below its signal line and shows red histogram bars. This pattern often signals continued downward momentum in the near term.
Based on these indicators, Ethereum appears to be in a bearish state. The market sentiment is negative, and sellers seem to be in control.
Will the Dump Continue?
The bearish sentiment might continue in the short term. However, there are two potential scenarios for Ethereum’s price action.
Currently, ETH is trading below a bearish trendline. If it can break above this line, we might see a price rebound. This would be a positive sign for bulls.
However, if buyers can’t hold the price at current levels, the dip will likely continue. A key support level of $2,811 could act as a reversal zone.
These factors determine the continuation of the bearish trend. If Ethereum breaks above the trendline, it could signal a trend reversal.
But if it fails to do so and breaks below $2,811, we might see further downside. While the current technical analysis paints a bearish picture for Ethereum, a new meme coin might be a viable option for diversification.
Pepe Unchained: A Promising Ethereum Alternative in the Meme Coin Space
Pepe Unchained (PEPU) is gaining much attention in the crypto world. This innovative meme coin has gathered over $6.7 million in the ongoing presale.
Looking at the presale, it could even hit $7 million before next week. Pepe Unchained is different from many meme coins in the crypto space. It aims to create its own Layer-2 network on Ethereum.
Why Pepe Unchained Could Be an Ethereum Alternative?
Pepe Unchained plans to create its network on top of ETH. This could make transactions 100 times faster than even Ethereum.
The project also offers a staking program for its users or investors. Investors can lock up their tokens to earn additional rewards.
Notably, investors can stake their PEPU tokens to earn rewards, with estimated returns of 283% per year. Currently, over 566 million tokens have already been staked on the platform.
PEPU tokens are currently available for $0.0088396 each, but this price will increase in less than 24 hours. Pepe Unchained’s social media presence is increasing. It has almost 9,000 Twitter followers and over 4,100 Telegram members.
Some crypto analysts have started talking about Pepe Unchained. They see potential in the project’s ideas and goals. Since the project is currently in its presale phase, early investors can buy the tokens at this low rate before they become widely available.
Iepe Unchained’s innovative approach and strong community support make it a potential Ethereum alternative. However, investors should always do research before investing in any cryptocurrency project.
Check out the best crypto presales to invest now
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