Ethereum (ETH) has reportedly undergone a massive downturn of more than 8% in the last 24 hours. It has dropped from $3,100 to $2,900, as reported by the news sources. However, there seems a way for an Ethereum rebound in 2024.
The reported decline is massively linked to Genesis Trading’s transfer of 256,775 ETH as part of its bankruptcy proceedings. Ethereum is reportedly the second-largest cryptocurrency by market cap, and it has gone below $3,000 for the second time in the past 30 days. This downward step displays global market concerns and notable sell-off pressure within the crypto landscape.
Impact of Genesis Trading’s Bankruptcy
Today’s 8.41% decline in ETH is closely attributed to the actions of Genesis Trading, a major influencer in the crypto ecosystem. The company has allegedly transferred $521 million in Ethereum (256,775 ETH) and $1.1 billion in Bitcoin (32,256 BTC) to several addresses as part of its bankruptcy proceedings in order to repay creditors. Genesis Trading, which filed for bankruptcy in January 2023 due to mismanagement of funds linked to the Gemini Earn program, secured court approval in May to liquidate $3 billion worth of assets to repay the victimized customers.
The wider crypto market is already under stress because of the Mt. Gox BTC repayments, which have added to a bearish sentiment.
Ethereum Rebound in 2024: Will ETH Climb to $3,500?
Ethereum’s price was shortly recorded to recover to around $3,150 but has since dropped below $3,000, affected by the recent ETH transactions by Genesis Trading. This drop has also led to massive liquidations, with an alleged $80.07 million recorded in the past 24 hours.
According to the news sources, long positions were the most affected, totalling $71.56 million. According to the daily price chart, Ethereum’s price is struggling below the key support level of $3,000, with recent price action showing a potential further drop. The 21-day simple moving average (SMA), currently above the price, might act as a resistance level of around $3,323. If ETH can come back from the $2,844 to $2,760 support zone, there might be a probability for an Ethereum rebound in 2024.
Technical Analysis and Potential Recovery
The W-shaped recovery pattern indicates a potential market rebound after a drop, marked by two low points with a brief rally in between. If the price rises above the previous peak after the second dip, it may show a more sustained upward trajectory. However, the resistance at $3,100 has proven difficult to outgrow, pushing ETH deeper down.
News sources report that on the 4-hour chart, the rejection from the $3,500 resistance level indicates a potentially larger bullish image. Despite this, the price has corrected nearly 30% of its recent rally and is within the Fibonacci retracement golden zone, suggesting a potential Ethereum rebound in 2024. However, with the RSI still below 50, the signalled momentum favors a continued bearish trend.
Additionally, the key support levels range from $2,844 to $2,760. A bounce from this range could lead to a recovery towards the resistance levels at $3,323 and $3,550, adding to an Ethereum rebound in 2024. Conversely, failing to hold these support levels may result in further drops.
Market Sentiment and Future Outlook
The current market movements herald the volatility and uncertainty within the cryptocurrency arena. The actions of Genesis Trading and the broader market pressures, like the Mt. Gox BTC repayments, have hugely affected Ethereum’s price. Investors and traders are closely watching these developments, looking for signs of an Ethereum rebound in 2024.
While the current technical signals indicate a difficult pathway for Ethereum, the potential for recovery stands tall. The W-shaped recovery pattern and the key support levels provide a framework for comprehending possible future trends. Market participants will need to keep a close eye on these signals and wider market trends to glide through the uncertain landscape.
To conclude, Ethereum’s current decline reflects the complexities and risks characteristic of the cryptocurrency market. However, the potential for an Ethereum rebound in 2024 stays, dependent on multiple technical and market factors. Investors must stay informed and agile, taking both the risks and opportunities into account. Follow TNYR for more updates.
