Ethereum: Here’s Why ETH’s Price is Down 3% – Is the Rally Over?

Paigambar Mohan Raj
Ethereum Cancun Upgrade Explained
Source: CNBC

Ethereum’s (ETH) price has declined 3% over the past 24 hours. The development has sparked concerns that the token’s rally that began in late January may be coming to an end.

This pullback comes on the heels of ETH hitting $3,000 earlier this week for the first time since April 2022.

Profit-Taking Prompts Sharp Ethereum Pullback

Ethereum’s (ETH) sharp decline has mainly been attributed to technical factors. ETH hit the crucial $3,000 level on Tuesday, and since then, it has pulled back as investors took profits.

This is a common occurrence after a significant price milestone is reached.

Bulls get exhausted after a long rally, while some traders may look to sell into strength near strong resistance levels.

ETH is now hovering around the $2,930 level, marking a drop of just over 3% from Tuesday’s high.

Looking closer at the technicals, ETH hasn’t posted a lower high yet, which some analysts view as a positive sign.

However, spot trading volumes have dropped 15% since yesterday to $16.5 billion.

A dip in trading volumes can often signal that investors are losing interest in a token, leading to further price declines due to a lack of demand.

Only time will tell where Ethereum (ETH) goes from here, but in the meantime, traders are taking a more cautious approach than they have been recently.

Is the Ethereum (ETH) Price Drop a Correction or a Crash?

So, is the Ethereum (ETH) rally entirely over, or is this just a temporary setback?

Based on the technical factors discussed above, most traders would argue it’s the latter rather than the end of Ethereum’s bullish run.

Pullbacks are healthy during a bull market, as there will always be periods where investors take profits.

Looking further into 2024, the upcoming Proto-Danksharding upgrade to Ethereum is also likely to support further gains.

Proto-Danksharding will optimize Ethereum’s network even more, enabling it to be more scalable.

In turn, this will make it appealing to decentralized application (dApp) developers who are looking to launch high throughput platforms.

Finally, there have also been multiple filings for a spot Ethereum ETF in the US following the launch of spot Bitcoin ETFs in January.

If one (or multiple) spot Ethereum ETFs were to be launched, it could open the doors for a massive influx of capital from institutional investors.

Overall, while Ethereum may be down in the past few days, it could be argued that it’s more of a natural correction rather than the beginning of a downtrend.  

Which Newer Cryptos Could Still Rally?

While Ethereum is pulling back, some investors are seeking newer cryptos that could still rally soon.

One such crypto is Bitcoin Minetrix (BTCMTX), which is in the midst of a highly successful presale phase.

Stake-to-Mine Feature Drives Buying Frenzy for Bitcoin Minetrix in Presale

Bitcoin Minetrix’s presale has been a hit with retail investors, raising over $11.3 million in funding so far.

During the presale, early investors can buy the native BTCMTX token for just $0.0136, which is expected to be a discount on the eventual exchange listing price.

Over 800 million BTCMTX tokens have been sold, with investors worldwide participating.

Many of these investors have opted to stake their BTCMTX tokens to generate passive income, given that the annual yields are currently 60%.

However, the main reason for all the buzz around Bitcoin Minetrix is its Stake-to-Mine feature.

Using this feature, BTCMTX holders can mine Bitcoin without needing advanced computing hardware or technical expertise.

As outlined in Bitcoin Minetrix’s whitepaper, this essentially unlocks Bitcoin mining to the masses.

The smart contracts that underpin this Stake-to-Mine feature have been audited by Coinsult and were found to be entirely safe.

Combining a high-yield staking protocol and Stake-to-Mine innovation has led to enormous hype around the Bitcoin Minetrix presale.

With over 33% of the allocated tokens now snapped up, investors have limited time to get involved before BTCMTX makes its open market debut.

Visit the Bitcoin Minetrix Presale