The global crypto market has experienced solid bearish sentiment in the last 24 hours as the Ethereum (ETH) token takes a major hit. As tracked on CoinMarketCap, the ETH token recorded an 8.20% loss, pushing its price to $3,141. This negative sentiment is largely attributed to Tuesday’s ETF launch, which caused ripple effects on the entire crypto market.
As a result, the total market capitalization dipped by over 4% to $2.3 trillion from a weekly peak of $2.60 trillion, recorded on Sunday. Following this negative price action, key players like Bitcoin and Binance Coin also witnessed losses, with BTC plummeting over 3% to $63.9K and BNB declining by 4.18% to $560.
Meanwhile, the total trading volume in the crypto market paints a different picture, as it surged 15.84% to $87.03 billion within the same period. This signals significant trading activities despite the recent price drops.
Long-Term Bullish Outlook for Ethereum
As cited in a CryptoNewsZ post, this bearish sentiment in the ETH market echoes the “sell-the-news” context witnessed in Bitcoin ETF approval news in January. Per reports, Bitcoin observed a 20% retracement to this year’s low of $38,532 within 12 days. Upon reaching this level, the token massively surged by over 91% to its all-time high of $73.7K in the next 51 days.
Consequently, market experts predict a potential recovery and surge in Ethereum’s price following its recent dip. Should history repeat, ETH could see its price drop to the $2.82K threshold, marking a 20% retracement. Subsequently, a massive 90% rebound could push Ethereum’s price to a new all-time high of around $5.38K by the end of Q3.
Supporting this forecast, market analyst Michael Van de Poppe is highly bullish on ETH in the long term. He believes the asset is the most undervalued in the crypto market and predicts a significant surge to an all-time high in the $7,000–$7,500 range.
“Probably it’s very likely to suspect that a price rally from $3,500 to $7,000–7,500 is on the cards and that Ethereum is, by far, the most undervalued asset out there.” Van de Poppe noted.
ETH Indicators Signals Bearish Trend
Focusing on the daily charts, the RSI index is moving in a downtrend below the signal line, indicating a robust bearish mood in the ETH market. Positioned at 40.80, the RSI index indicates ample space for the bearish mood to persist in the short term before reaching oversold conditions.
On the same accord, the Moving Average Convergence Divergence indicator tells a similar story as the MACD line dips toward the zero line at 13.17. This pattern is further corroborated by the MACD’s histogram chart, with its bars flattening along the zero line, implying that bears take full control of the ETH market in the short term.
Also Read: Donald Trump Raises Over $4M in Bitcoin & Altcoins for Campaign
Credit: Source link