In recent market analysis, ITC Crypto founder Benjamin Cowen and MN Consultancy founder Michaël van de Poppe have identified key patterns and trends in the Ethereum market. Cowen pointed out a wedge chart pattern that mirrors previous cycles, indicating a potential breakout due to an impending interest rate cut. On the other hand, van de Poppe highlighted a bullish divergence in the ETH chart, suggesting a possible upward trend reversal. Both experts anticipate significant movements in the market based on these findings.
As of the time of writing, ETH prices are trading up 2.6% on the day at $2,345. The recent price action saw Ethereum hitting a low of just below $2,200 on Sept. 7, indicating strong support levels at play. However, despite the recent rebound, ETH has underperformed compared to its previous highs, dropping 46% from its peak in mid-March. This underperformance can be attributed to various factors, including concerns over diminishing network fees and an increase in supply inflation.
Recent data from on-chain analytics platform Santiment revealed that Ethereum has experienced significant network growth, with over 126,000 new wallets created in a single day. This surge in network activity is seen as a positive indicator of rising utility and demand for Ethereum. Additionally, Santiment analysts noted a correlation between network growth and price action, suggesting that increasing network activity could lead to a price reversal in the near future.
Despite the positive signs of network growth, Ethereum faces challenges such as the rise of meme coin minters on layer-2 network Base, leading to increased network revenue but also potential issues of parasitic usage. The recent support for EIP-4844 by Coinbase has also sparked debates on the shift towards inflationary supply issuance, contributing to the decline in fees. These challenges highlight the need for Ethereum to address scalability and network congestion issues to sustain its growth and competitiveness in the market.
The recent trends and analysis of Ethereum by market experts point to both opportunities and challenges for the cryptocurrency. With increasing network growth and positive price action, there is potential for a price reversal and recovery in the near future. However, Ethereum must address key issues such as network scalability and fee structures to maintain its position as a leading cryptocurrency in the market.
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