Ethereum Price Risks Losing $3,500, End of the Road for Bulls?

Over the past couple of weeks, the crypto market has lurched in uncertainty, showing no clear commitment in any particular direction. The main digital assets Bitcoin and Ethereum price represent this indecisive nature with several short candles in the daily chart.

However, in the recent analysis shared by Ki Young Ju, CEO of CryptoQuant, the Bitcoin Thermo Cap Ratio was highlighted as a relevant metric for understanding Bitcoin’s valuation relative to its network fundamentals.

The Thermo Cap Ratio, rarely highlighted in traditional analyses, measures miners’ cumulative security spending (or thermo cap) relative to market capitalization. According to Ki Young Ju, Bitcoin is “currently not overvalued based on network fundamentals despite recent price increases.”

Therefore, the market seems to be regaining its bullish momentum thanks to the ongoing consolidation and may continue the existing rally shortly.

Read also: Main reasons why ETH price could soon reach a new all-time high

1) The price of Ethereum is moving dangerously

Ethereum stands out as a decentralized platform that not only supports cryptocurrencies like Ether, but also enables the creation and execution of smart contracts and decentralized applications (dApps).

Ethereum (ETH)| Commercial view

Ethereum price traded at $3,762 on Tuesday, with a market capitalization of $452.1 billion. Amid the current market uncertainty, the leading altcoin has stabilized above the $3,700 support.

The daily chart projecting several price rejection candles below $3,700 indicates that buyers are actively defending the support. A potential rebound in this support would push the ETH Price by 8.5% to challenge the peak and resistance at $4,090. Note that a break of this barrier is crucial for buyers to resume the current uptrend.

However, if the current consolidation continues, it would indicate weakness in buyer conviction, suggesting a potential breakout of the $3,500 support.

Read also: Ethereum Price Analysis: Can Bulls Push Price to $5,000 on RWA Narrative?

2) Cardano (ADA)

Cardano (ADA) is a third-generation blockchain platform known for its research-driven approach and commitment to security and sustainability. It features a layered architecture that separates the settlement and calculation layers, allowing for more flexible updates and maintenance.

THE Cardano Price has been trading sideways for almost two months, resonating within two converging trendlines of the symmetrical triangle pattern. The altcoin bounced twice from the upper boundary and three times from the lower boundary, indicating that trades are following the lead of this pattern formation.

Currently, the ADA the price is trading at $0.455, seeking support at the lower trendline. The Cardano coin currently holds a market capitalization of $16.27 billion and maintains its position as the 10th largest cryptocurrency.

Under favorable market conditions, coin buyers will likely cross the overhead trendline, signaling the end of the consolidation trendline. The post-breakout rally could lead ADA price to $0.62, followed by $0.68.

Read also: Cardano (ADA) Breaks May Bearish Streak, But a Major Rebound Awaits

3) PEPE piece (PEPE)

PEPE part is a meme-themed cryptocurrency inspired by the popular internet meme, Pepe the Frog. This project stands out for its community-based approach and emphasis on the playful, irreverent culture that characterizes many meme-based digital assets.

PEPE coin (PEPE)| Commercial view

An ascending trendline in the daily chart carries the current trendline of recovery in PEPE Price. Coin buyers with proper pullback support managed to push the asset from the April low of $0.00000393 to the high of $0.00001725, registering a gain of 339%.

However, the PEPE price returned 17% to $0.00001434 with the market correction, while the market capitalization plunged to $6.035 billion.

The coin price moving closer to the aforementioned trendline could once again support buyers amid demand pressure. A potential bounce from support will challenge $0.00001725 and aim for a higher target at $0.00002, followed by $0.000024.

Read also: Pepe Coin Price Prediction as Bullish Sentiment Breaks Out, Rally to $0.00002 Incoming?

Take away

The current market consolidation, highlighted by the Bitcoin price prediction and sideways Ethereum price action, has halted the recovery momentum of most major altcoins. However, with on-chain indicators such as the Thermo Cap Ratio, the broader trend remains bullish and is currently stabilizing for future moves. Thus, the ongoing consolidation could encourage buyers to regain recovery momentum and provide new entry opportunities for investors.

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