During Wednesday’s U.S. trading session, the cryptocurrency market saw a slight downturn, with Bitcoin struggling to maintain above $60,000. Meanwhile, the Ethereum price dropped by 1.8%, extending its correction as Q3 neared its end. Will the anticipated Fed rate cut shift the market dynamics and help ETH buyers regain bullish momentum?
Can Ethereum Price Reach $5K Despite Its Worst Q3 Performance in 5 Years?
According to Coinplus data, the Ethereum price prediction has showcased its worst Q3 returns from the last five years. As of press time, Q3 2024 returns are down 33.21%, with the possibility of further declines as there’s still over a week left until the end of September.
However, the ETH price sustainability above $2000 remains intact amid the market speculation of a Fed rate cut. In addition, the Ethereum Q4 historical data since 2016 shows a promising period of ETH price bounce, with an average return of 23.39%.
According to a recent analysis from Cryptoquant, the Ethereum holders show a diverging strategy amid the current market uncertainty. The large wallet holders with balances of 100k+ ETH appear stagnant but hold their position.
Meanwhile, the mid-tier holders with 10k-100k show a slow yet steady accumulation, indicating a cautious bullish outlook. Meanwhile, smaller holders with balances between 100 and 1,000 ETH are steadily selling off their holdings.Â
This trend reflects a varied approach across different investor classes, likely influenced by macroeconomic factors and Ethereum’s market performance.
Typically, the exit from short-term holders often causes price volatility and temporary dip for smart money traders to accumulate at discounted prices. If the theory holds, the Q3 dip could spark renewed buying interest from whales, keeping the potential target of $5,000 within reach.
$ETH Holders Show Diverging Strategies Amid Market Uncertainty
Large holders (100k+) are inactive (holding steady). Mid-tier holders (10k-100k) are accumulating slowly. Small holders (100-1k) are selling steadily. – By @Darkfost_Coc
Read more 👇https://t.co/G2P5PPFqxS pic.twitter.com/R4x6vRL8Ue
— CryptoQuant.com (@cryptoquant_com) September 18, 2024
ETH Price 13% Away From Major Suppor Retest
In the past four months, the Ethereum price has showcased a steady downtrend from $3,971 to $2,278 currently, registering a 42.67% loss. The downsloping 20 and 50-day Exponential Moving Average shows the market sentiment still following a sell-the-bounce sentiment.
With sustained selling, the ETH price could plunge 13% and retest the ascending support trendline intact since June 2020. Historically, every reversal from this dynamic support has doubled ETH’s value, signaling a strong accumulation zone.Â
However, if sellers break through the bottom trendline, the Ethereum price could enter a significant correction phase.
Frequently Asked Questions (FAQs)
Yes, renewed whale interest and historical Q4 data showing a 23.39% average return suggest Ethereum could still reach $5,000
A 13% drop could lead to a retest of key ascending support, historically known for doubling Ethereum’s value upon reversal.
Large holders remain stagnant, mid-tier holders are slowly accumulating, while smaller holders are selling off steadily amid market uncertainty.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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