Ethereum (ETH) was in a rush in the past few weeks, mirroring the bullish gains of Bitcoin (BTC). However, one might ask why it has been tanking today.
Whales Cashing Out Profits
Expert cryptocurrency trader Ali Charts observed that whales have started raking in profits as soon as ETH overcame the $2,300 barrier. The popular crypto personality on X warned it may trigger massive selling pressure for the token, which could drive down its price in the following weeks.
According to the analyst, the ensuing scenario could tank ETH down to $1,555 where it will retest its support. If that fails, its value will likely drop to $1,460 within the next two months.
Ethereum Now
As of this writing at 2:00 PM UTC, Ethereum is valued at $2,232, diving by 4.8% in the 24-hour frame. This drags its market cap down by 4.8% to the current total of $2.68 billion. Meanwhile, trading volume is significantly up by 65% as the coin moved between $2,171 and $2,376 within that period.
To date, ETH is still 54% behind the all-time high of $4,891 it achieved on November 16, 2021. Despite the bearish sentiments, it has shown a massive recovery of 75% since the year started, which indicates promising returns probably in 2024 as we await key Bitcoin or Ethereum exchange traded funds (ETF) news or official announcements.
ETH Spiking Network Fees
The true strength of Ethereum that puts it in a unique position against Bitcoin is its dominance in the non-fungible token (NFT) market. Recently, gas fees have also gone up due to the network congestion in the blockchain.
The surge is attributed to ETH’s $61.5 million gas fee accumulation in the past week said Crypto.news. In comparison, BTC nearly equaled those numbers at $61 million. Both of these are showing a healthy economy as Bitcoin is about to unlock major milestones next year.
Ethereum ETF on the Horizon
Similar to Bitcoin, Ethereum is now attracting a lot of attention from institutional investors. At the forefront of the hype for the token is the pending application of financial giants Grayscale and BlackRock for Ethereum ETF.
TheStreetCrypto’s Austin Arnold mulled over the possible heights ETH might reach if the ETF offerings of the industry giants were greenlit by the Securities and Exchange Commission (SEC). The crypto community is hoping for a $42,000 bump in Ethereum, which is at par with current Bitcoin prices.
Arnold instead proposes $28,000 as the most plausible outcome, but it will be in the long run. Looking at the present market conditions, however, puts $10,000 as the most realistic estimation.
One way or another, the forecast paints a positive picture for Ethereum for us diamond hands.