News sources report that Ethereum (ETH) has experienced a significant drop of over 8% in the last 24 hours, falling from $3,100 to $2,900. However, there seems a way for an Ethereum rebound 2024.
This decline is largely attributed to Genesis Trading’s transfer of 256,775 ETH as part of its bankruptcy proceedings. Ethereum, the second-largest cryptocurrency by market cap, has reportedly dipped below $3,000 for the second time in the past 30 days. This drop reflects global market concerns and substantial sell-off pressure within the crypto ecosystem.
Impact of Genesis Trading’s Bankruptcy
Today’s alleged 8.41% decline in ETH is closely tied to the actions of Genesis Trading, a major player in the crypto market. The company has moved $521 million in Ethereum (256,775 ETH) and $1.1 billion in Bitcoin (32,256 BTC) to various addresses as part of its bankruptcy proceedings aimed at repaying creditors. Genesis Trading, which filed for bankruptcy in January 2023 due to mismanagement of funds linked to the Gemini Earn program, received court approval in May to liquidate $3 billion worth of assets to repay affected customers.
The broader crypto market is already reported to be under pressure due to the Mt. Gox BTC repayments, which has contributed to a bearish sentiment.
Ethereum Rebound 2024: Will ETH Climb to $3,500?
Ethereum’s price briefly recovered to around $3,150, according to news sources, but has since fallen below $3,000, influenced by the recent ETH transactions by Genesis Trading. This decline has also led to significant liquidations, with $80.07 million recorded in the past 24 hours. Long positions were the most affected, totalling $71.56 million.
According to the daily price chart, Ethereum’s price is struggling below the key support level of $3,000, with recent price action suggesting a potential further decline. The 21-day simple moving average (SMA), currently above the price, might act as a resistance level of around $3,323. If ETH can bounce back from the $2,844 to $2,760 support zone, there might be a chance for an Ethereum Rebound 2024.
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Technical Analysis and Potential Recovery
The W-shaped recovery pattern suggests a potential market rebound after a decline, marked by two low points with a brief rally in between. If the price rises above the previous peak after the second dip, it may indicate a more sustained uptrend. However, the resistance at $3,100 has proven difficult to overcome, pushing ETH further downwards.
Reports suggest that on the 4-hour chart, the rejection from the $3,500 resistance level suggests a possible larger bullish scenario. Despite this, the price has corrected nearly 30% of its recent rally and is within the Fibonacci retracement golden zone, indicating a potential Ethereum Rebound 2024. However, with the RSI still below 50, the hinted momentum favors a continued bearish trend.
Additionally, the key support levels range from an alleged $2,844 to $2,760. A bounce from this range could lead to a recovery towards the resistance levels at $3,323 and $3,550, contributing to an Ethereum Rebound 2024. Conversely, failing to hold these support levels may result in further declines, experts suggest.
Market Sentiment and Future Outlook
The recent market movements highlight the volatility and uncertainty within the cryptocurrency space. The actions of Genesis Trading and the broader market pressures, such as the Mt. Gox BTC repayments, have significantly impacted Ethereum’s price. Investors and traders are closely monitoring these developments, seeking signs of an Ethereum Rebound 2024.
While the current technical indicators suggest a challenging road ahead for Ethereum, the potential for recovery remains. The W-shaped recovery pattern and the key support levels provide a framework for understanding possible future movements. Market participants will need to keep a close eye on these indicators and broader market trends to navigate the uncertain landscape.
In summary, Ethereum’s recent decline underscores the complexities and risks inherent in the cryptocurrency market. However, the potential for an Ethereum Rebound 2024 remains, contingent on various technical and market factors. Investors must stay informed and vigilant, considering both the risks and opportunities in this dynamic market environment. Follow TheBITJournal for more updates.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
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