According to a recent analysis, there’s no tendency for the Ethereum token to cross over the $2k level this year. So, we all know that October is one of the best years for the crypto market. There are expectations that this month might be the time for the ETH token to move over to $2k. However, here are the reasons ETH tokens won’t make it to this price level.
Fundamental Drop in Network Activity
Image from DefiLlama
- When making a prediction of a cryptocurrency, fundamental analysis is one of the critical factors to consider. So, this is the same with the Ethereum token, and it is not looking good at the moment. The total value locked (TVL) of this leading blockchain network is currently poor. So, metrics such as this tend to have a reflection on the general price.
- According to data from DefiLlama, there was a drop from 18.41 million ETH to 12.79 million ETH so far in 2023 in the TVL of the Ethereum network. So, this is quite massive, and this is what is making ETH not make the gigantic bullish run. Furthermore, this is also contributing to the drop in the network fees. So, according to data from Santiment, there was a drop in the Ethereum network’s gas fees, resulting in a yearly low on Oct. 5.
Ethereum Price Formation Isn’t Looking Good
Image from TradingView
- According to a recent analysis with data from TradingView, the price formation of the ETH tokens isn’t looking good. So, there are inconsistencies with the Ethereum price, preventing it from crossing over to $2k in 2023. The formation of this price pattern has the exact resemblance to the bearish rejection near $425 from 2018 to 2019. So, the ETH token appears to be in a recovery phase in both cases.
- Another thing to note is that both of them are in the 0.236 Fib line of the Fibonacci retracement graph. So, being within this line is preventing the ETH token from having a breakthrough.
Watch Out for Ethereum. It Might Collapse as Justin Sun Prepares a Massive $132 Million Withdrawal
- Away from why Ethereum might never cross to $2k, there’s an ongoing liquidation that might cause issues for the Ethereum network. So, the new owner of the HTX Crypto Exchange, Justin Sun, is about to sell off a massive amount of ETH holdings. In fact, he is already selling off a large amount of them.
- According to data from Lookonchain, Justin Sun applied to withdraw 80,251 Ethereum (ETH) tokens on Wednesday. So, he already made the withdrawal of a whopping $70 million, according to the blockchain tracking platform. This is very concerning as it can affect the price of Ethereum.
Conclusion
There are many reasons the ETH token might not reach or pass the $2k range in 2023. So, one of them is that the price trajectory of the ETH tokens is at a level that won’t allow the progression to the $2k level. Furthermore, some certain fundamentals in the blockchain, such as the TVL, are down within the year.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
