Saad Ullah
Ethereum (ETH) is experiencing short-term selling pressure with a recent retreat to $3,058. However, analysts remain optimistic, projecting a long-term rally to $10,000.
Ethereum (ETH) Pulls Back Amid Whale Movements
Ethereum's price retreated to $3,058 on Monday, November 18, marking an 11% decline from this month's high of $3,445. The pullback suggests a local technical correction, driven in part by significant whale activity.
According to data from LlamaFeed, whales moved over $300 million worth of ETH in the past 24 hours. The largest transaction involved 50,000 ETH, valued at $153 million, transferred to Kraken with a minimal transaction fee of $12.80. Additionally, another whale moved 15,579 ETH, worth $47.8 million, to Coinbase. Typically, such movements to exchanges are seen as a precursor to liquidation.
ETF Outflows Add Pressure to Ethereum (ETH)
Ethereum also faced downward pressure from consecutive outflows in spot ETFs. On Friday, outflows reached $59.8 million, significantly higher than the $3.24 million recorded the previous day. Despite this, cumulative inflows for Ethereum-focused ETFs stand at $178 million, a stark contrast to Bitcoin's $27 billion inflows.
Ethereum has underperformed smaller networks in the decentralized exchange (DEX) sector. Over the past 24 hours, Ethereum's DEX volume fell 4.7% to $850 million. In comparison, Solana processed $5.92 billion, while Base, Binance Smart Chain (BSC), and Arbitrum recorded $1.28 billion, $1.27 billion, and $992 million, respectively.
Long-Term Optimism for Ethereum (ETH)
Despite the short-term headwinds, some analysts maintain a bullish outlook for Ethereum. A leading crypto analyst predicts that Ethereum could rally to $10,000 in the long term, representing a 226% increase from its current level. Catalysts supporting this projection include Ethereum's deflationary model and the potential for staking via ETFs.
The daily chart supports this optimism, as Ethereum nears the formation of a golden cross—a bullish pattern emerging from the 50-day and 200-day exponential moving averages. Furthermore, the recent sell-off appears to be stabilizing at the 50% Fibonacci retracement level.
Technical Outlook for Ethereum (ETH)
If Ethereum’s price bounces back, the initial target will likely be $3,447, corresponding to this month's high. A successful breakout above this level could push ETH towards its year-to-date high of $3,972. Long-term projections remain even more ambitious, with a potential surge to $10,000 on the horizon.
Saad Ullah
