Ethereum has been on a turbulent path in recent weeks, with the price showing significant volatility. ETH has seen its value both skyrocket to unprecedented levels and fall in response to market dynamics and investor sentiment. With Bitcoin currently stealing the spotlight by crossing the $27,000 mark, this is prompting ETH holders to jump at the chance to accumulate more coins during the price dip ahead of a possible bullish rise. Despite the tempting prospect of ETH mirroring Bitcoin’s rise, market signals indicate that a downward correction could be on the horizon.
Ethereum developers can cause a wave
The escalating wait times and growing interest in setting up Ethereum validator nodes has prompted developers to consider a substantial increase in current restrictions. Developers are proposing a dramatic increase in the validator limit from 32 ether (ETH) to 2,048 ether, representing a staggering 6,300% increase.
This proposed change is in response to the actions of major entities such as Lido and various crypto exchanges offering staking services, which have been forced to initiate multiple validation nodes to provide staking revenue services to their users.
Current data indicates that the waiting time for serving an Ethereum validator node has increased to 44 days. Despite this, no entity is currently queued to leave the network. This suggests strong demand from major Ether holders to join the network and earn an annual yield of close to 5%, indicating potential upward pressure on the ETH price.
In addition, data from Lookonchain shows that numerous large-scale investors, or “whales,” are taking advantage of Ethereum’s dip to weekly lows by significantly increasing their purchases. This strategy provides an ideal opportunity to sell at high prices during a bullish market phase. Overall, these market sentiments could potentially act as a catalyst and trigger a price reversal for Ethereum.
What’s next for the ETH price?
Ethereum’s recovery efforts are currently meeting resistance above the 50-day EMA at $1,732, although a small positive is that the bulls have managed to keep the price above $1,700.
Currently, Ethereum is attempting an increase above $1,750 as buyers prepare for a breakout above the 23.6% Fib channel with intense buying pressure. However, bears will strongly defend a push above EMA100 which may initiate a slight downside correction for ETH price. At the time of writing, ETH price is trading at $1,741, up more than 1.3% in the past 24 hours.
If ETH price bounces back from $1,700, it will likely aim to rise above the 100-day EMA. If successful, it could mark the end of the correction phase in the near term, potentially leading to a rise first to $1,861 and then to $1,916.
On the other hand, if the price falls from its current position and moves below $1,700, it would suggest that the bears are still in control. While there is a small support at $1,630, a break from this level could push Ethereum price down to $1,372.