Is it Ethereum's Time to Shine? 3 Reasons Why ETH Price Will Rally Soon

Highlights

The Ethereum price could plunge 18% to recuperate bullish momentum for a $3000 leap.
Large holders now control 44.17% of the Ether supply, signaling increasing confidence in ETH’s long-term potential.
Robert Mitchnick backs Ethereum ETFs, stating, “It’s very rare that you see an ETF get to a billion AUM in seven weeks, as ETHA did.”

The Ethereum price plunged 3.5% during the U.S. market session on Tuesday, currently trading at $2500. This drop in ETH is in line with the broader crypto market pullback. However, the outlook for Ethereum (ETH) could improve in Q4 for a couple of reasons. October, in particular, could allow ETH to shine.

Is it Ethereum’s Time to Shine?

Yes, the historical price data for Ethereum shows a higher possibility for a bullish trend in Quarter 4. According to Coinglass data, ETH’s average return in Q4 stands at 20.8%. If history repeats, Ethereum could be in for a massive uptrend that could drive it beyond the $3,000 psychological level.

ETH — Ethereum Quarterly returns | Santiment

Additionally, Santiment data reveals that ETH whales holding between 100,000 and 1 million coins have been actively accumulating since August. The supply distribution metric shows large holders buying has surged from 19.83 Million to 20.61 Million, marking a notable percentage increase. Historically, the market correction aligned with whale accumulation led to the bottom formation in several assets, indicating the ETH price could hold a $2,000 line.

Supply Distribution | Santiment

Additionally, the whale transaction count for transactions exceeding $100,000 has surged to 1,252, highlighting the growing activity among large holders. This increased interest from whales coincides with the rising Ethereum (ETH) supply held by top addresses, which now control 44.17% of the total supply. The growing concentration among large holders indicates their confidence in the asset’s future potential, suggesting a potential reversal in near term.

ETH — Supply Held by Top Addresses | Santiment

Why Ethereum Has Failed to Rally So far?

The ETH price is still 48% down from its all-time high of $4,891, compared to Bitcoin, which trades less than 15% of $73,750 ATH. The ETH underperformance in the Bitcoin rally can be attributed to interest in their respective exchanged traded funds (ETFs).

Robert Mitchnick, head of digital assets at BlackRock, speaking at the Messari Mainnet conference in New York, acknowledged the “underwhelming“ BlackRock’s Ethereum exchange-traded fund (ETHA), suggesting the narrative of Digital Gold favored Bitcoin.

However, the high correlation between Bitcoin and Ethereum, which earlier hindered the ETH’s independence rally, can now boost its price for a higher rally.

ETH Price Forecast:

a) ETH Price Longterm Outlook Forecasts $10k

In the long term, Ethereum has potential to reach $10,000. This forecast is grounded in ETH’s healthy retracement and whale accumulation to drive the forward rally. Concerning the seven-month correction, the FIB extension tool shows a rally to $7310, followed by an extruded rally to $10540.

b) Daily Ethereum Price Chart Hints at $3.5k Before 2024

The ETH price records a four-day fall from $2700 to $2500— a 7.56% drop— amid a broader market pullback. The overhead supply bolstered by the 100-day EMA slope hints at another reversal, maintaining a sell-the-bounce sentiment in the market.

With sustained selling, the Ethereum price could plunge 18% to reach the $2000 psychological level. This support, backed by a 61.8% Fibonacci retracement level and an ascending trendline intact since June 2022, indicates a high area of interest (AOI).

Ethereum ( ETH )price — ETH/USDT -1d Chart

The bullish momentum recuperated at this support could boost the next recovery leap to $3,500.

Frequently Asked Questions (FAQs)

1. Is it Ethereum's Time to Shine in Q4?

Yes, historical data suggests Ethereum tends to perform well in Q4, with an average growth of 20.8%. Whale accumulation and increased confidence from large holders signal a potential bullish trend ahead

2. What has hindered Ethereum's price rally so far?

Ethereum's underperformance compared to Bitcoin is largely due to the focus on Bitcoin's "digital gold" narrative and interest in Bitcoin ETFs

3. What is the short-term price forecast for Ethereum?

In the short term, Ethereum may face a potential 18% drop to $2000, supported by the 61.8% Fibonacci retracement level.

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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

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