Ethereum (ETH) Price Shows Signs of Recovery after Major Bearish Fall
Ethereum (ETH) price has shown signs of rebounding in the past few hours after a testing 24 hours. According to several analysts, the leading altcoin fell by more than 30% yesterday, but critical indicators remain positive.
Ethereum (ETH) Price drops sharply
The cryptocurrency market suffered a major correction yesterday, wiping close to $200 billion from the total market cap. The leading coin, Bitcoin, lost nearly $10,000 from its price, which caused a ripple effect in the market. Ethereum (ETH) was not spared, with the coin losing more than 30% of its value, dropping to around $900.
The dump led to questions within the market on whether the dip was a healthy correction. It should be noted that Ether has been on an extended bullish run since last September. For now, the prevalent theory is that the price experienced a necessary correction in the midst of a bullish run.
Ethereum has rebounded nicely since the dip, with nearly 27% growth in the past few hours. At the time of publication, Ether is valued at $1,101 and is one of the few altcoins in the green zone. Looking at the current market trend, the next support level for ETH is around $900, while an upturn in price could see it move towards a new all-time high in the coming days.
Key Indicators Indicates Bullish Sentiments for Ether (ETH)
The bullish run for Ethereum is expected to continue according to key indicators. Analytical firm Glassnode revealed in a report yesterday the evolution of Ethereum transaction fees, also known as gas fees.
Glassnode noted that gas fees have been increasing in the past 12 months and its demerits. It is a positive indicator of the altcoin and shows that the bullish run is far from over. “This can be seen as a sign that ETH is capturing more value than BTC, and therefore is poised to outperform Bitcoin in terms of market cap in the future.” It stated.
Besides, Ethereum whales had also increased despite the dump in price yesterday. Crypto analytical firm Santiment noted that 17 new addresses holding 10,000 to 100,000 ETH joined the network. This shows that Ether’s price still has room to grow for big investors and will continue to increase in value.