{"id":437689,"date":"2023-09-09T12:04:12","date_gmt":"2023-09-09T12:04:12","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=437689"},"modified":"2023-09-09T12:04:12","modified_gmt":"2023-09-09T12:04:12","slug":"ethereum-price-prediction-a-bearish-triangle-points-to-a-10-eth-drop","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/ethereum-price-prediction-a-bearish-triangle-points-to-a-10-eth-drop","title":{"rendered":"Ethereum Price Prediction: A Bearish Triangle Points To A 10% ETH Drop"},"content":{"rendered":"

After rising above the crucial $2,000 mark in mid-July following the partial legal win by Ripple Labs against the U.S. Securities and Exchange Commission (SEC), Ethereum embarked on a downtrend that was halted at $1,600. <\/span><\/p>\n

The largest altcoin by market capitalization,<\/a> ETH has been consolidating above that level since then. It’s trading 20% below it’s high in the recent past at $2,030 with a number of on-chain metrics and the technical setup pointing to further losses.<\/span><\/p>\n

The current bearish sentiment in the market is doing little to spark hopes of a sustained recovery in the near future. Data from Alternative<\/a>, a firm that analyzes “emotions and sentiments” in the crypto market, reveals that the Crypto Fear and Greed index is in the “Fear” zone at 41.<\/span><\/p>\n

\"Crypto<\/a><\/p>\n

This suggests that investors are worried about their investments and they may continue selling to minimize losses.<\/span><\/p>\n

Declining TVL on Ethereum Reinforces the Downside<\/span><\/h2>\n

Apart from the drab price action and bearish market conditions, on-chain metrics point to decreasing demand for ETH<\/a>. Notably, the total value locked (TVL) on the Layer 1 network has decreased from a 2023 high of $31.5 billion in mid-April to the current value of $21.44 billion, according to data from DeFiLlama<\/span><\/a>.<\/span><\/p>\n

Total Value Locked On Ethereum<\/b><\/span><\/p>\n

\"Eth<\/a>
Source: DefiLlama<\/figcaption><\/figure>\n

The number of Ethereum addresses holding a minimum of $1,000 in ETH has hit its lowest point in six months.<\/span><\/p>\n

This trend is worrying considering that the Ethereum price<\/a> reached a peak of $2,140 in  April, which was expected to have attracted more users to the network. Similarly, the amount of revenue generated on the platform has dropped by more than 84% from $14.43 million in mid-April to $3.3 million on Sept.5. This points to a lack of interest among investors and developers.<\/span><\/p>\n

\"Ethereum<\/a>
Source: DeFiLlama<\/figcaption><\/figure>\n

Part of the reason why there appears to be a lack of investor interest in ETH is that transaction fees on the Smart Contacts network remain high. Note that Ethereum’s average transaction fee has remained above $4 for the past six months. This keeps investors and developers away as they turn to cheaper Layer 2 solutions. This, in turn, results in decreasing revenues.<\/span><\/p>\n

On the upside, whales appear to be taking advantage of the low prices to accumulate more. According to Ali Martinez, a popular crypto analyst on social media platform X, Ethereum Whales<\/a> added 260,000 ETH with a staggering $425 million within 24 hours on one day this week.<\/span><\/p>\n

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#Ethereum<\/a> whales appear to have purchased around 260,000 $ETH<\/a> within the last 24 hours, worth nearly $425 million. pic.twitter.com\/rPRMhnI6oD<\/a><\/p>\n

— Ali (@ali_charts) September 5, 2023<\/a><\/p><\/blockquote>\n