Ethereum (ETH) Price Could Dip Even Lower
Bitcoin has been steadily in the driving seat throughout the past few weeks, and recent on-chain analyses imply that things could get worse for the crypto industry’s second-leading coin, Ethereum.
Analytics and blockchain data company Santiment has been assaying some on-chain metrics for Ethereum, which is still at the core of DeFi, and they’re not looking too good from a price view. The research has shown that Ethereum miners have been unloading, and trader sentiment has appeared recently.
Ethereum Rally is Losing Momentum
When PayPal revealed that it would be supporting crypto payments on its platform, which included Ethereum, Bitcoin prices soared to their highest levels for the year, but Ethereum barely lifted a finger. What followed was a bit of negative sentiment about the news as the payments company would not allow digital assets to move to or from the platform.
Ethereum did not manage to break its 2020 high in the most recent rally, suggesting that the FOMO has lost steam and is preparing for a larger correction. ETH is now down around 18 percent from its 2020 highs of $480.
Santiment charts suggest that miners could be offloading as their inactive coins started moving during the upswing. Moreover, Ethereum’s weighted social media sentiment has been pushed back into the bearish zone in the last week.
ETH Price Outlook
Ethereum prices, which many imply are still undervalued, have not matched the same FOMO and performance as Bitcoin. It also had an unsuccessful attempt at marking a new monthly high, as shown by the analyses.
In stark contrast to BTC, ETH has failed it's monthly level and is now finding resistance there.
If ETH fails to reclaim that resistance this month I think $270 (the next support) is more likely than further upside. pic.twitter.com/bsHoqszLTK
— DonAlt (@CryptoDonAlt) October 26, 2020
ETH dropped to $385 on Tuesday but has since recovered and is changing hands just above the $405 line at the press time. The next key support zone on the daily timeframe is around the $370 level, where the 50-day moving average is located.
Below that is a long dip to $320, and in case the bears start to attack the markets, a fall into the high $270 zone may be possible. This would be even more probable if Phase 0 of ETH 2.0 doesn’t launch before the end of this year.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.