Ethereum’s price recently dipped into the $1,550 range before experiencing a rapid rebound to $1,570, though the potential for further losses remains on the horizon.
Furthermore, ETH transaction fees have reached their lowest levels in 2023, causing some traders to grow impatient with the current price dynamics.
Amidst the prevailing bearish sentiment, experts from the market intelligence platform Santiment suggest that a potential turnaround may be on the horizon.
Notably, Ethereum (ETH) has seen its correlation with Bitcoin (BTC) widen since mid-September, with the second-largest cryptocurrency by market capitalization increasingly charting its own path. This bearish trajectory has often frustrated long-term investors, prompting some to close their positions in a bid to avoid more substantial losses.
The price of Ethereum has fallen below the $1,570 mark.
On October 9, Ethereum (ETH) experienced a nearly 5% drop in price, bringing it to its current value of $1,580, with an intraday low of $1,546. Analyzing the Relative Strength Index (RSI) and the lagging Awesome Oscillator (AO) suggests that this decline might not have concluded, requiring ETH holders to remain prepared. CoinMarketCap data indicates a substantial 110% surge in trading volume for the token over the last 24 hours.
Should Ethereum secure a decisive daily candlestick close below the $1,570 level, it not only has the potential to trigger increased buying activity but may also initiate a fresh downtrend by fulfilling orders stemming from the previous lower high.
To a certain extent, the Ethereum Foundation has had a significant impact on causing a decline in ETH’s price by becoming a source of Fear, Uncertainty, and Doubt (FUD). This occurs whenever it engages in any type of sell-off. Critics have gone as far as to label these sell-offs as a lack of confidence in the protocol, often leading to substantial sell-offs shortly after these deliberate sell-offs are executed.
Apart from the Ethereum Foundation’s direct sell-offs, influential figures within the Ethereum community, including co-founder Vitalik Buterin, are also known to liquidate substantial amounts of Ethereum for undisclosed purposes.
In the cryptocurrency realm, Santiment, a behavior analytics platform that draws from on-chain, social, and development data, reports that Ethereum transaction fees have reached their lowest levels in 2023 following a consistent decline over several months. Concurrently, social dominance, which measures the frequency of mentions on crypto-related social media platforms, has reached its highest point in seven months.
As Ethereum’s price continues its descent, investors are growing increasingly impatient, as evidenced by the escalating discussions surrounding the Proof-of-Stake (PoS) token.
Santiment reports a divergence in opinions among traders regarding the future of Ethereum’s price, turning ETH into a contentious topic, particularly on Crypto X. As bearish sentiment gains momentum, experts at Santiment anticipate the possibility of a market reversal.
Meanwhile, Ethereum Futures Exchange-Traded Funds (ETFs) have not met the anticipated expectations, contrary to earlier projections. As of October 2, all ETH ETFs combined have generated a total trading volume of just $1.7 million.
Similarly, institutional interest in ETH has been lackluster since the beginning of the year, leading to outflows totaling $114 million. You can find the complete story here.
Frequently Asked Questions about Ethereum
What is Ethereum?
Ethereum is an open-source, decentralized blockchain that offers smart contract capabilities. It serves as the foundational infrastructure for the Ether (ETH) cryptocurrency and is currently the second-largest cryptocurrency and the largest altcoin in terms of market capitalization. Ethereum is designed to prioritize scalability, programmability, security, and decentralization, making it a favored platform among developers.
Which blockchain technology is employed by Ethereum?
Ethereum utilizes decentralized blockchain technology, enabling developers to construct and launch applications that operate independently without a central authority. To facilitate this, the network incorporates a programming language that assists users in crafting self-executing smart contracts. Essentially, a smart contract is code that can be verified and facilitates transactions among users.
What is staking?
Staking is a method through which investors expand their portfolios by locking their assets for a predefined period instead of selling them. It is a common practice in many blockchains, particularly those employing the Proof-of-Stake (PoS) mechanism. Users participate in staking to earn rewards as an incentive for committing their tokens. For many cryptocurrency holders with a long-term perspective, staking represents a strategy for generating passive income from their assets, essentially putting them to work in exchange for rewards.
What prompted Ethereum’s transition from Proof-of-Work to Proof-of-Stake?
Ethereum made the shift from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism during a significant event known as “The Merge.” This transition was driven by several objectives, including enhancing network security, drastically reducing energy consumption by 99.95%, and implementing new scalability solutions, potentially enabling up to 100,000 transactions per second. The PoS system also lowers entry barriers for participants due to its reduced energy requirements, making it more accessible for miners.