Ethereum (ETH), the second-largest cryptocurrency by market capitalization, finds itself perched precariously at the precipice of a substantial corrective phase, a development that has instilled palpable unease among market observers.
The situation has been further exacerbated by ARK’s recent submission of an application for an Ethereum Spot Exchange-Traded Fund (ETF) to the U.S. Securities and Exchange Commission (SEC). This move has injected an additional layer of ambiguity into ETH’s price trajectory, especially in light of the prospective synergy with a spot Bitcoin ETF, which could potentially exert a bullish influence on the value of decentralized finance (DeFi) assets.
Against this backdrop of heightened uncertainty surrounding Ethereum’s price dynamics, the astute team at Finbold has turned to the deployment of machine learning algorithms via PricePredictions, a cryptocurrency monitoring and prognostication platform, on September 7. The primary aim was to discern the plausible price projection for ETH as the curtain falls in September, taking into account the most recent developments in the crypto arena.
According to the rigorous analysis undertaken, the prognosis for ETH suggests a potential marginal downturn to $1,611 by the concluding day of September.
ETH technical analysis
Turning our focus to the technical aspects of ETH, we observe its current trading price at $1,627, with a steadfast support level at $1,560 and a formidable resistance level situated at $1,702.
Over the course of the day, ETH has undergone a slight 0.18% decline, and it has experienced a more pronounced 4.65% dip over the past week, encapsulating a cumulative market capitalization of $195 billion.
A telling tweet from cryptocurrency analyst Ali Martinez, dated September 6 and shared on X (formerly Twitter), underscores the imminent concerns surrounding Ethereum’s price trajectory. Martinez, in his missive, underscores the significance of Ethereum breaching the $1,680 threshold, as this could potentially serve as the gateway to a substantial corrective phase, ultimately driving the price down to the $1,200 range.
In an illuminating revelation, Martinez disseminated insights from the crypto analytical powerhouse, IntoTheBlock, which illuminated the scarcity of addresses engaged in Ethereum acquisitions within the price bracket of $1,285 to $1,681. This scarcity, juxtaposed with subdued activity at these price levels, augments the plausibility of a price regression to the $1,200 mark, as posited by Martinez.
Meanwhile, the 1-day technical analysis (TA) gauges over at the crypto analytics website TradingView are bearish, their summary indicating a ‘sell’ at 15, as derived from moving averages (MA) pointing at a ‘strong sell’ at 14 and oscillators in the ‘neutral’ at 9.
Taking into account these factors, the machine predictions could, indeed, prove correct.
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