Key Points
- Ethereum (ETH) price shows a midterm bearish outlook despite recent ETF approvals and increased whale buying.
- Bitcoin (BTC) price also experiences a dip, affecting the overall altcoin industry.
Despite recent approval of spot Ether ETFs in the United States and Hong Kong, the price of Ethereum (ETH) has struggled to surpass $4K.
Over the last two weeks, Ethereum’s price has ended on a bearish note, a trend that could continue into the current week.
Altcoin Industry Outlook
The price of Bitcoin (BTC) has also fallen below $70K, after facing significant resistance around $72K.
The altcoin industry began the week with a bearish outlook, influenced by significant news from the United States.
This week, the United States Federal Reserve is expected to announce its funds rate, which is highly anticipated by the market.
Market economists expect the Federal Reserve rates to remain unchanged, even as the European Central Bank initiates rate cuts from 4 percent to 3.75 percent.
The Bank of Canada has also initiated interest rate cuts, adding pressure on the Federal Reserve to follow suit.
Ethereum Whales and Market Impact
On-chain data analysis from Glassnode reveals that Ethereum addresses holding at least 10,000 Ether units have increased by about 3 percent in the last three weeks.
This increase indicates that long-term buyers are consistently accumulating the altcoin, with Ethereum supply on centralized exchanges at an eight-year low.
The supply-demand shock for Ethereum is expected to further tighten after the listing of the approved spot Ether ETFs in the United States.
BlackRock has announced a $10 million seed for its spot Ether ETF, a figure significantly higher than its seed for the BTC ETF.
Ethereum buyers are betting on an inevitable rally in the coming months, especially considering the four-year crypto bull cycle marked by the Bitcoin halving.
The Ethereum network has been preparing for mass Web3 adoption through several updates to reduce network fees and increase its throughput.
Midterm Ether Target
Historically, Ethereum’s price has closely mirrored that of Bitcoin, with a few exceptions.
Crypto analyst Crypto Patel suggests that Ethereum’s price against the US dollar must hold the support level of around $3,650 to avoid further correction towards $3,152.
If the Ether price against the US dollar fails to hold the support level around $3,650 and drops to $3,150, Crypto Patel predicts that the altcoin will surge beyond $4k towards midterm targets of between $6k and $7k.
Ethereum’s price is expected to go parabolic in the coming quarters, fueled by increased network adoption.
As of this report, the Ethereum network had a total value locked of over $64 billion and a stablecoins market cap of about $80 billion.
