In the last few weeks, Ethereum’s price has continued to underperform below the expectations of traders and investors. There’s more than a 20% Decline in the last month, with the price staying at $2.6k. This article will analyze Ethereum’s price and its dependency on Bitcoin’s price movements.
Ethereum’s Price Performance
With a price decline of -2.00% in the last 7 days, Ethereum (ETH) is underperforming the global cryptocurrency market, which is up by 0.10%. Currently priced around $2,600, Ethereum has faced significant downward pressure, raising concerns about its future price trajectory. Despite Ethereum’s strong fundamentals, its price appears to be struggling to find solid ground as broader market sentiment remains bearish.
Ethereum’s close correlation with Bitcoin (BTC) continues to be a significant factor in its price performance. Furthermore, data from CoinMarketCap shows the market valuation declined from a high of $333 billion to around $313 billion in the last seven days.
Ethereum’s Price Analysis – Over 20% Decline in 30 Days
Ethereum’s recent 30-day performance reflects a concerning trend. Over the past month, ETH has experienced a sharp decline of over 20%, falling from $3,200 to the current level of $2,600. This significant drop has wiped out billions in market capitalization, raising alarms among investors. One of the driving factors behind Ethereum’s decline is the broader market downturn, led by Bitcoin’s weakening performance.
Moreover, Coinmarketcap data shows ETH starting the last 30 days at $3.5k. However, the price has seen a low of $2.1k within the same period. The market valuation received the same effect. It was initially at $422 billion at the start of the last 30 days. Then it saw a high of $433 billion before declining to as low as $259 billion. Apparently, this was the same time when Bitcoin’s price declined to $48k.
Outlook of Ethereum in the Last 3 Months and Year – Is it Dependent on Bitcoin’s Price?
Ethereum’s price over the last three months and the past year showcases its deep interconnection with Bitcoin. So, Coinmarketcap data shows a decline of more than 12% for Bitcoin in the last 3 months. Within the same period, there was a decline of more than 30% for Ethereum. Moreover, the price which saw a high of over $4k within this period reduced to $2.1k.
Nevertheless, Bitcoin’s price reduced from over $72k to $48k within the last 90 days. This shows how much Ethereum and the broader crypto market react and depend on Bitcoin’s price movements. Ethereum’s market cap also fell from over $453 billion within the same period.
Ethereum’s Price Predictions
According to CoinCodex Ethereum price predictions, the price of Ethereum might increase by 6.32% and reach $2,749.49 by September 18, 2024. Despite the current bearish sentiment and a Fear & Greed Index showing a score of 28 (Fear), technical indicators suggest a potential short-term recovery for Ethereum.
Furthermore, the 200-day simple moving average (SMA) for Ethereum could drop, reaching $3,223.95 by September 18, 2024. Meanwhile, Ethereum’s short-term 50-day SMA might rise to $2,713.10 by the same date. The Relative Strength Index (RSI), which currently stands at 40.10, indicates that the ETH market is in a neutral position, neither oversold nor overbought.
Conclusion
Ethereum’s recent price decline highlights its ongoing dependency on Bitcoin. Despite its strong fundamentals and growing ecosystem, Ethereum’s price remains closely tied to Bitcoin’s market movements. Thus, as long as this correlation persists, Ethereum may struggle to achieve independent price stability. Investors should watch both Bitcoin and Ethereum closely in the coming months, as broader market conditions will likely dictate Ethereum’s next major price moves.
Cover Image from Microsoft Designer
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.
