After an impressive bullish breakout last week, Ethereum's (ETH) price has seen a significant pullback, with the altcoin losing its upward momentum. As of Thursday, November 14, during the mid-New York session, ETH is trading around $3,133—down over 6% from its recent highs. Despite this decline, the overall sentiment in the crypto market has shifted, with fears of a major capitulation easing significantly.
Ethereum’s market cap, now at a fully diluted valuation of approximately $377 billion, remains substantial. However, the price drop has sparked renewed interest among traders, especially as Bitcoin enters its price discovery phase. This shift in market dynamics has helped boost Ethereum's Fear and Greed Index, which currently stands at 78%, signaling "extreme greed" among traders.
Ethereum has recently shown signs of resurgence after successfully rebounding from its 200-weekly Moving Average (MA). This is the first time since the August 5 crypto crash that Ethereum has consistently closed above the crucial support/resistance range between $2,800 and $2,900. This price action has instilled confidence in traders, with many viewing it as a sign of a bullish trend continuation.
Key technical levels to watch:
Crypto analyst Michaël van de Poppe has noted that Ethereum has underperformed Bitcoin over the past two years, but things could be changing. He pointed out a bullish reversal pattern forming in the ETH/BTC pair, with key support at around 0.034 and a positive divergence in the Relative Strength Index (RSI), suggesting that Ethereum could outperform Bitcoin in the near future.
Another positive factor supporting Ethereum’s price is the growing interest from institutional investors. In recent days, U.S. spot Ether exchange-traded funds (ETFs) have seen significant inflows, with more than $500 million accumulated in just a few days. This surge in institutional investment could provide further upward pressure on Ethereum’s price, as larger market players continue to pour capital into ETH, seeing it as a strong long-term asset.
The increased institutional participation aligns with Ethereum's broader shift toward institutional acceptance, especially as the network continues to scale and improve with the upcoming Ethereum upgrades.
While Ethereum has made significant strides, some crypto analysts are cautioning against jumping into rallying altcoins just yet. Renowned crypto analyst Benjamin Cowen, known for his focus on market cycles, recently advised altcoin investors to avoid chasing meme coin rallies, stressing that the "real" altseason has not yet arrived.
Cowen argued that the true altcoin season will only begin when Bitcoin dominance significantly decreases. Currently, Bitcoin dominance has been gaining ground against the broader altcoin market, especially following Bitcoin's recent surge above $93,000. As Bitcoin continues to capture market share, altcoins have struggled to keep up, with the OTHERS/BTC pair hitting new lows. However, Cowen believes that as Bitcoin's dominance peaks, altcoins like Ethereum could see their time to shine.
Ethereum's future looks promising, with several bullish indicators suggesting potential gains ahead. The ongoing support from institutional investors, the bullish reversal pattern in the ETH/BTC pair, and Ethereum's price holding above crucial levels all suggest that the altcoin could see further upward momentum.
However, Ethereum's price will likely remain volatile, as it navigates between periods of consolidation and breakout. Traders will need to keep an eye on Bitcoin’s price action and the overall market sentiment, as these factors will likely influence Ethereum’s next move.
Ethereum's recent price correction after its bullish breakout has brought some volatility to the market, but the overall sentiment remains positive. With rising institutional interest, technical patterns suggesting potential upside, and the increasing likelihood of a Bitcoin dominance reversal, Ethereum’s outlook remains bullish in the medium to long term.
As traders continue to monitor key support and resistance levels, Ethereum is well-positioned to capitalize on future market shifts, especially if Bitcoin's dominance wanes and the true altseason begins. Investors should be prepared for volatility, but Ethereum’s resilience and institutional backing make it a key player in the ongoing cryptocurrency evolution.
November 2024, Cryptoniteuae