Ethereum (ETH) has experienced a price drop of 1.92% and is currently trading at $2,493.15 in the last 24 hours. During the dip, the token traded between a daily low of $2,462.17 and a daily high of $2,557.71, respectively.
With the reduction of the coin price, market capitalization of Ethereum dropped by 1.89%, which is linked to the decreased demand on the market and loss of investors’ interest.
Ethereum’s Price Performance and Market Sentiment
Ethereum has been on a downward trend throughout the day, suffering a decline from its daily high of $2,557.71 to an intra-day low of $2,493.15.
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This downward movement is accompanied by a sharp decline in trading volume which fell by 14.64% to $16.01 billion showing less interest in trading activities.
The market cap as of now stands at $300.17 billion which indicates that there is a dip in investor confidence. The Ethereum price movements reflect moderate volatility within its daily trading range.
Key support is observed at $2,462.17 and resistance is around $2,557.71. Analysts are monitoring these levels as traders look for potential signals of support or further declines.
Analyst Predictions for Price Action
Although ETH faced a bearish trend in the last week, numerous analysts have a bullish stance on Ethereum in the near future. Analyst Louis Yellow pointed out that Ethereum exchanges saw $80m in withdrawals which may alleviate some of the selling pressure.
Similarly, the number of Ethereum wallets holding more than $1 million worth of ETH is still on the rise, meaning more long-term holders are becoming increasingly confident.
Yellow also noted that ETH has just broken out of the symmetrical triangle pattern, which may lead to a 23% increase in the next couple of weeks. He stated,
“Could get interesting for sure with such an optimistic outlook. But one of the reasons for that is reduced selling pressure. Quite a bullish signal to me as Ethereum’s price could keep rising in the near future.”
According to him, although the short-term trend has been negative, such signals offer a potential entry for a turn and traders will eye Ethereum’s next steps for indications of a bounce.
Solana Outshines Ethereum in Recent Performance
Even though Ethereum has seen some price fluctuations, Solana (SOL) has been generating buzz regarding its record-breaking earnings. Solana generated $8.7 million in network revenue in the current week alone, a sharp increase from the $8 million it had generated.
This rise in revenue comes at the time when Solana’s TVL raised from $250 million to $6.8 billion this year, with Solana growing faster than Ethereum by 600% in 2023.
As the market performance of SOL improves and the TVL continues to grow, the Solana ecosystem is rapidly expanding. These changes make one wonder if Solana will outperform Ethereum as a blockchain, given the significant progress it has recorded this year.
While Ethereum continues its struggle to overcome market corrections, overall sentiments are more or less divided. The current lower price and relatively low market capitalization reflect trader’s nervousness, yet the decrease in selling pressure and an increase in holdings indicate the potential for a rebound.
