Ethereum Faces Critical Crossroads as Bulls Battle $4,800 Despite Recent Correction
Ethereum's impressive rise has hit a temporary wall, with the price dropping 3.4% in the last 24 hours to around $4,300. Last week, ETH hit
Quick overview
- Ethereum's price has dropped 3.4% to around $4,300 after reaching yearly highs of $4,788 last week.
- A significant outflow from U.S. Spot Ethereum ETFs, totaling $59.34 million, coincided with this price decline.
- Analysts identify the $4,800 mark as a critical resistance level that could determine Ethereum's future price movement.
- Despite recent dips, whale accumulation and bullish predictions suggest a long-term optimistic outlook for Ethereum.
Ethereum’s ETH/USD impressive rise has hit a temporary wall, with the price dropping 3.4% in the last 24 hours to around $4,300. Last week, ETH hit yearly highs at $4,788, which is quite close to its all-time high of $4,878 set in 2021. This decline follows after that.
The reversal happens at the same time as the first big outflow from U.S. Spot Ethereum ETFs in more than a week. These investment vehicles lost a net $59.34 million on August 15, ending an eight-day streak that had raked in $3.7 billion in institutional money. BlackRock’s ETHA still brought in $338.09 million a day, but Grayscale’s ETHE and Fidelity’s FETH saw big withdrawals of $101.74 million and $272.23 million, respectively.
The $4,800 Liquidity Wall: Ethereum’s Ultimate Test
There are a lot of sell orders around the $4,800 mark on the blockchain, which analysts have called Ethereum’s “final boss.” Merlijn The Trader’s liquidity heatmap data shows that there are billions of sell orders stacked at this important resistance level on Binance’s ETH/USDT pair.
This liquidity cluster is more than just a technical obstacle; it’s a psychological fortification that could decide what Ethereum does next. If the price breaks above this level with enough volume, analysts say it might cause “open skies,” which could send ETH to new all-time highs. If this barrier isn’t broken, though, the market may keep consolidating or go back even farther.
Whale Accumulation Fuels Long-Term Bullish Outlook
Even if there was a recent dip, whale activity shows that there is a lot of trust in Ethereum’s long-term future. Lookonchain, a blockchain tracker, found that one address belonging to DeFiance Capital bought 30,366 ETH worth $114 million in just 28 hours. BitMine Immersion Technology’s purchase of more than 106,000 ETH, worth more than $470 million, further shows that institutions believe in the technology.
Tom Lee of Fundstrat Global Advisors has made news with his daring prediction that Ethereum may hit $15,000 by December. There are a number of basic reasons why this optimistic prediction is likely to come true. These include Ethereum’s deflationary tokenomics after the proof-of-stake transition, the growing use of Layer 2, and the growing amount of money that companies are putting into their treasuries.
ETH/USD Technical Analysis Points to Potential Retracement
Right now, technical signs show that Ethereum’s short-term path is unclear. The RSI on the daily chart is 62. It fell from the overbought zone last week and is now pointing down, which means that positive momentum is diminishing. The MACD lines are getting closer together, which could lead to a bearish crossover. This makes the correction scenario more likely.
A close look at 4-hour charts shows that the $4,700 to $4,800 area is a supply-heavy resistance zone where Ethereum has shown signs of running out of steam. A number of technical indicators, such as Break of Structure signals, fair value gaps, and Fibonacci retracements, point to a possible move back below $3,375, which would be a drop of more than 20% from where we are now.
Ethereum Price Prediction: Bulls Target $15K Despite Near-Term Headwinds
People in the cryptocurrency world still can’t agree on what Ethereum should do next. Bears say that the failed breakout attempt at $4,788 and the deteriorating momentum indicators are signs that a correction is coming that will take the price down to the $3,946 support level.
Bulls, on the other hand, say that the fundamentals are still robust. Standard Chartered has boosted its year-end goal to $7,500. Some analysts think that if adoption trends keep going the way they are, the goal might be as high as $12,000 to $15,000. The bank is optimistic because Ethereum’s deflationary mechanism, along with continued institutional demand and the rise of the Layer 2 ecosystem, are all good signs.
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