- The ETH/USDT pair revealed a cumulative volume delta divergence.
- Ethereum is likely to bounce from crucial support.
Ethereum[ETH], the second-largest cryptocurrency, has become the focus of attention as traders and investors prepare for Q4 2024 amidst widespread market uncertainty.
Recent analysis of the ETH/USDT pair revealed a cumulative volume delta (CVD) divergence. As ETH prices make equal highs while CVD forms lower highs, this divergence suggests a potential reversal.
CVD divergence typically signals weak buying pressure, implying that Ethereum could see further price changes.
Source: Hyblock Capital
If the orderbook depth remains constant, ETH might create lower highs, but if the depth increases, higher prices are expected.
ETH/USDT at a key support
Analyzing Ethereum’s price action revealed that ETH/USDT was at a crucial support level at press time, forming a broadening ascending wedge on higher timeframes.
A double bottom pattern may form along the ascending trendline, potentially signaling an upward move. However, a break below this support level could lead to further price declines.
On the daily chart, ETH is also shaping a double bottom at the $2,100 mark, a key point for potential recovery.
Source: TradingView
A rate cut could catalyze Ethereum’s bounce in Q4, following the trend of other cryptocurrencies in recent years.
Mega whale address count
The mega whale address count, representing holders with over 10K ETH, has steadily declined, indicating weaker confidence from large investors.
Whales ceased accumulating ETH in early July, instead they chose to selling or redistributing their holdings.
Despite this, the CVD divergence suggests that the correction phase might be ending. However, doubts remain due to the continued decline in mega whale addresses, which could hamper any significant price reversal.
Source: Glassnode
OI-Weighted Funding Rates
Open Interest-Weighted (OI-Weighted) Funding Rates for Ethereum, analyzed using Coinglass, showed rising green numbers, a positive sign for ETH.
Increasing OI-Weighted Funding Rates typically indicate growing trader interest in Ethereum, implying a bullish outlook for the long term.
As traders return to the market, ETH may be poised for a price rebound, particularly as it approaches a critical zone that could dictate its next move.
Source: Coinglass
ETH fees on mainnet falling
Ethereum’s mainnet fees have significantly decreased, dropping over 30x in the past six months. This has sparked concerns about Ethereum’s long-term viability, but these worries are unfounded.
ETH collects a portion of fees from its Layer 2 solutions, which boosts its overall network activity. Lower mainnet fees benefit traders who previously avoided ETH due to high costs.
Read Ethereum’s [ETH] Price Prediction 2024–2025
This change could attract more activity, especially in the memecoin space, a growing sector.
Source: Token Terminal
The launch of Ethervista, akin to Solana’s Pump.Fun, will also play a pivotal role in ETH’s price movement by boosting liquidity for ETH-based memecoins, positioning Ethereum for potential growth in Q4 2024.
