Ethereum Price Prediction: 60% recovery despite recent fall
Ethereum's recent price drop may be due to increased exchange reserves and diminishing on-chain activity.
Ethereum ETFs lost $3.2 million, ending their inflow run.
If Ethereum bounces off $2,817 to confirm the inverted head and shoulders pattern, it might rise 60%.
A increasing exchange reserve and falling network costs may explain Ethereum (ETH)'s latest price drop, which is approaching $3,000 on Friday. ETH might soar 60% if it breaks $2,817 support.
Ethereum has fallen since Tuesday's three-month peak of $3,372. A number of on-chain actions may explain its decline:
CryptoQuant reports that Ethereum exchange reserves rose 141,000 ETH worth $430 million in 24 hours. Increased exchange reserves signal stronger selling pressure. The rise in ETH's exchange reserves may explain its 7% drop in two days.
A modest dip in on-chain activity may also explain the price drop. Ethereum's total transaction fees dropped from 5.65K ETH on Wednesday to 3.88K ETH on Thursday. After rising since November 9, ETH's total fees fell on Thursday, indicating a reduction in user activity.
Ethereum ETFs lost $3.2 million on Thursday, breaking their inflow run, according to Coinglass. This is their first net outflow since November 4. ETH ETFs' trading volume reached $1.63 billion, their highest since debut, notwithstanding outflows.
Ethereum price forecast: ETH could rise 60% from $2,817 support.
Ethereum fell 1.7% after $54.48 million in 24-hour liquidations. Long and short liquidations were $37.81 million and $16.66 million.
Top cryptocurrency is challenging its 14-day EMA at $3,000 psychological barrier. ETH may rebound from $2,817, its critical support level from April to July, if it continues to fall.
A bounce from $2,817 will confirm an inverted head-and-shoulders pattern that might push ETH to $4,522 by 60%. It must clear important resistance levels including $3,400, $3,562, $3,732, and its annual high of $4,093.
