The cryptocurrency markets are currently experiencing a significant downturn, with Bitcoin dropping below $92,000 and struggling to maintain its gains. Ethereum has also been impacted by a recent rejection at $4100, causing the token to potentially lose support at $300. Traders’ interest in Ethereum has waned, leading to a decrease in transaction count and volume.
One key indicator of market activity is the active address count, which reflects the level of traffic on the platform and can influence token volatility. A rise in active addresses typically indicates increased buying, selling, or swapping activity, which can affect prices. However, Ethereum has seen a decline in active addresses since the end of 2024, resulting in lower highs and lows.
This decrease in trader participation has also led to a drop in transaction count, suggesting that Ethereum’s price may continue to consolidate. With bearish sentiment prevailing in the markets, there is an expectation of a 10% pullback in the ETH price soon.
In terms of price action, Ethereum is likely to test support levels below $3000, with a potential rebound towards $4000. This could complete an inverse head and shoulders pattern, potentially triggering a 50% upswing to new highs above $6500. A similar pattern in the past led to a 60% pullback for Ethereum, but a reversal now could result in a new all-time high in the near future.
Overall, the current market conditions indicate a period of consolidation and potential price movement for Ethereum. Traders should closely monitor key support and resistance levels to make informed decisions in this volatile market.