The Ethereum price has dropped by 2% in the past 24 hours, falling to $1,810 following the news that a participant in the cryptocurrency’s 2016 ICO has moved 1 ETH to a new address.
Today’s dip means that ETH has declined by 13% in a week, although it’s still up by 3% in the last 30 days and by 51% since the beginning of the year.
However, with the aforementioned ICO investor potentially testing the waters for a larger transfer and possibly a sale, there’s a chance that ETH could witness a few further decreases in the near future.
Yet in the longer term, April’s successful Shanghai upgrade has only strengthened Ethereum’s already-strong fundamentals, with the platform and its native token in good shape for further gains in the coming months.
Ethereum Price Prediction as Early Ethereum ICO Whale Becomes Active After 7 Years – What’s Going On?
ETH’s chart suggests that the selling is likely to stop in the immediate future, with its indicators set up for further declines.
In particular, the coin’s relative strength index (purple) has dropped below 50 and continues to decline, with price falls not likely to correct themselves until the RSI reaches 30 and/or falls below it.
At the same time, ETH’s 30-day moving average (yellow) remains far beyond its 200-day (blue), indicating that the altcoin hasn’t come close to bottoming out just yet.
Indeed, ETH continues to fall through support levels, breaching $2,000 towards the end of last week and sliding below $1,900 over the weekend.
It looks like it could fall through $1,800 as well, especially if the news of an Ethereum ICO whale moving some long-dormant ETH is to be taken seriously.
On the one hand, the fact that this whale has begun moving ETH after more than seven years of dormancy should be taken as a potential warning sign.
Yet, on the other hand, they moved only 1 ETH out of a total received amount of 2,365 ETH, so it’s not necessarily the case that the whale is gearing up to offload more than $4 million in the cryptocurrency.
Other whales seem to be more inclined to sell at the moment, however, suggesting that ETH is due further falls before recovering again.
Despite today’s fall, the bull case for ETH has been strengthened in recent days by the news that major French bank Société Générale has launched a euro-denominated stablecoin on the Ethereum blockchain.
This is a massive endorsement for the layer-one blockchain, given that it suggests that major financial institutions and enterprises are likelier to put their trust in Ethereum than in any of its rivals.
Just as importantly, the recent Shanghai update has strengthened Ethereum’s fundamentals even further, making it possible to withdraw staked ETH and thereby making staking more attractive to any investors who want to earn a passive income.
Some analysts have forecast that the platform’s staking rate (in terms of the overall supply of ETH) will rise somewhere close to 60%, meaning that a substantial amount of ETH could be taken out of circulation.
Given such a reduction in the supply of ETH, the coin could see steady price increases as the year progresses, returning to $2,000 in the next few months before potentially hitting $3,000 by the start of 2024.
This article was originally published by CryptoNews.
