ETH has dropped nearly 10% during the day; what is the outlook for the market?
ETH It is an open-source blockchain platform designed to provide decentralized application (DApp) development and smart contract execution. It supports a wide range of applications including decentralized finance (DeFi), non-fungible tokens (NFT), decentralized autonomous organizations (DAO), etc., through the automation of smart contract protocols. Its native cryptocurrency ETH is used for paying transaction fees and incentivizing validators.
Despite facing challenges in scalability, network congestion, and high transaction fees, Ethereum‘s leading position in the blockchain field remains significant. Ethereum is addressing these issues through Layer2 solutions and ongoing protocol upgrades, while maintaining its advantage as the core infrastructure of the decentralized internet (Web3). With the successful implementation of The Merge, Ethereum 2.0 significantly enhances its network transaction speed and throughput.
In addition, on July 23, 2024, the ETH ETF was officially launched. Following BTC, ETH is the second cryptocurrency to receive approval for a spot ETF. Since the launch of the ETH ETF, the cumulative inflow of funds is 26.84 billion US dollars, about 7% of the total inflow of funds for the BTC ETF.
According to Gate.io market data, ETH is currently priced at $3326.16, with a 24-hour decline of 9.52%. The current circulating market value of ETH is $401 billion. Since the bull market, ETH has significantly underperformed BTC, falling 30% from its historical high of $4,890.
ETH market analysis
Trading data
- Current price: 3326.16 USDT
- 24h change: -9.52%
- 24-hour highest price: 3679.83 USDT
- 24-hour lowest price: 3307.01 USDT
- 24-hour trading volume: 423,471.47 ETH
- 24-hour net inflow: -1,646,153,370 USDT
- Support level: 3,328.43 USDT
- Resistance level: 3,463.82 USDT
Trading strategy advice
Strategy 1: Rebound Bullish Strategy
- Direction: Bullish
- Entry price: 3,330 USDT (look for rebound opportunities near the support level)
- Stop-loss price: 3,300 USDT
- Target price: 3,460 USDT (near resistance level)
Reasons and features: The current price is close to the support level of 3,328.43 USDT, and a rebound may occur. Due to the market sentiment being greedy, investors may choose to buy on price pullbacks. The target price is set at 3,460 USDT, considering the existence of resistance level, suitable for short-term trading.
Strategy 2: Breakthrough trading strategy
- Direction: Bullish
- Entry price: 3,460 USDT (enter when breaking through the resistance level)
- Stop-loss price: 3,400 USDT
- Target Price: 3,600 USDT
Reasons and Features: If the price breaks through the resistance level of 3,463.82 USDT, it may trigger further upward movement. The stop-loss is set at 3,400 USDT to protect funds and avoid losses from a significant pullback. The target price is set at 3,600 USDT based on market sentiment and technical analysis expectations.
Outlook
From the market performance, although ETH has retraced from its all-time high and lagged behind BTC in the recent bull market, its continued development of infrastructure and ecosystem still gives it long-term growth potential. Currently, ETH may experience price fluctuations in the short term, and investors can look for rebound opportunities near key support levels or take a bullish strategy when breaking through important resistance levels.
In addition, the launch of the ETH ETF signifies the recognition of Ethereum in the traditional financial market, and the continuous increase in capital inflows since its launch indicates strong market demand.
