Ethereum (ETH), the world’s second-largest cryptocurrency, continues to battle uncertainty as its price plummets. Investors are on edge as whales exit positions and market sentiment swings between fear and a glimmer of hope.

Ethereum price struggles to recover footing

ethereum price The past few months have been a roller coaster ride. After hitting new highs at the end of 2021, the cryptocurrency has fallen sharply, spooking investors. The recovery has been slow, with Ethereum currently hovering around $3,077, far from its peak.

Source: Coingecko

This lackluster performance has caused anxiety among investors, especially large holders known as whales. Lookonchain’s recent data paints an alarming picture. A year ago, a whale bought ETH and cashed it out, netting him $16 million in profit. This whale action highlights a possible exodus of large investors, potentially causing prices to fall further.

Fear grips Ethereum whale

WhaleStats, a platform that tracks large cryptocurrency holders, has revealed that Ethereum whales are experiencing extreme fear. The BSC Chain Ethereum Whale Fear and Greed Index, a measure of investor sentiment, is currently in the “extreme fear” zone. This suggests that whales are hesitant to make big moves and are waiting for the market to stabilize before putting money into them.

Source: WhaleStats

Ethereum remains the most popular token among whales, but their misgivings are palpable. They closely monitor market movements and wait for clear signals before taking the plunge.

Opinions differ on the future of ether

The future of Ethereum remains a subject of debate among crypto analysts. Ashcrypt, a prominent analyst, believes a recovery is possible in the third quarter of this year. Based on historical patterns in 2020 and 2021, we predict that Ashcrypto will see a surge in price towards $4,000.

Ethereum price update

– Similar fractals from Q4 2020

– According to past patterns, a breakout could occur in the third quarter of 2024

Once it breaks, a 100x alt season will begin and ETH will move towards $15,000. pic.twitter.com/F1Zr6mQeHB

— Ashcrypt (@Ashcryptoreal) May 6, 2024

IntoTheBlock data reveals a strong correlation between Ethereum price and high trading volume. The recent decline in large transactions coincides with the price decline, suggesting that whales are playing a key role in influencing Ethereum’s trajectory.

Total crypto market cap currently at $2.28 trillion. Chart: TradingView

Overview of ETH price trends

Meanwhile, Ether is expected to continue its bearish correction with the next target set at $3,090, with further bearish bias demonstrated if it settles below $3,120 once again.

If the price breaks above $3,100, it will halt the expected decline and attempt to regain the main positive trend. A move below the EMA50 would support the recommended continuation of the negative wave.

Is Ethereum heading for a comeback?

The answer remains unclear. Some analysts are predicting a comeback, but the ongoing whale sell-off and fearful market sentiment pose major challenges. The next few months will be critical for Ethereum as it tries to weather volatile markets and regain investor confidence.

Featured image from Hakai Magazine, chart from TradingView

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