The Ethereum price has dropped by 2% in the past 24 hours, falling to $1,810 following the news that a participant in the cryptocurrency’s 2016 ICO has moved 1 ETH to a new address.
Today’s dip means that ETH has declined by 13% in a week, although it’s still up by 3% in the last 30 days and by 51% since the beginning of the year.
However, with the aforementioned ICO investor potentially testing the waters for a larger transfer and possibly a sale, there’s a chance that ETH could witness a few further decreases in the near future.
Yet in the longer term, April’s successful Shanghai upgrade has only strengthened Ethereum’s already-strong fundamentals, with the platform and its native token in good shape for further gains in the coming months.
Ethereum Price Prediction as Early Ethereum ICO Whale Becomes Active After 7 Years – What’s Going On?
ETH’s chart suggests that the selling is likely to stop in the immediate future, with its indicators set up for further declines.
In particular, the coin’s relative strength index (purple) has dropped below 50 and continues to decline, with price falls not likely to correct themselves until the RSI reaches 30 and/or falls below it.
At the same time, ETH’s 30-day moving average (yellow) remains far beyond its 200-day (blue), indicating that the altcoin hasn’t come close to bottoming out just yet.
Indeed, ETH continues to fall through support levels, breaching $2,000 towards the end of last week and sliding below $1,900 over the weekend.
It looks like it could fall through $1,800 as well, especially if the news of an Ethereum ICO whale moving some long-dormant ETH is to be taken seriously.
On the one hand, the fact that this whale has begun moving ETH after more than seven years of dormancy should be taken as a potential warning sign.
Yet, on the other hand, they moved only 1 ETH out of a total received amount of 2,365 ETH, so it’s not necessarily the case that the whale is gearing up to offload more than $4 million in the cryptocurrency.
Other whales seem to be more inclined to sell at the moment, however, suggesting that ETH is due further falls before recovering again.
Despite today’s fall, the bull case for ETH has been strengthened in recent days by the news that major French bank Société Générale has launched a euro-denominated stablecoin on the Ethereum blockchain.
This is a massive endorsement for the layer-one blockchain, given that it suggests that major financial institutions and enterprises are likelier to put their trust in Ethereum than in any of its rivals.
Just as importantly, the recent Shanghai update has strengthened Ethereum’s fundamentals even further, making it possible to withdraw staked ETH and thereby making staking more attractive to any investors who want to earn a passive income.
Some analysts have forecast that the platform’s staking rate (in terms of the overall supply of ETH) will rise somewhere close to 60%, meaning that a substantial amount of ETH could be taken out of circulation.
Given such a reduction in the supply of ETH, the coin could see steady price increases as the year progresses, returning to $2,000 in the next few months before potentially hitting $3,000 by the start of 2024.
Love Hate Inu Offers Its Own Strong Fundamentals
Given that Ethereum seems to be going through a pronounced dip at the moment, traders looking for sizeable short-term gains may prefer to look at other high-potential tokens with strong fundamentals.
One of the most interesting of these is Love Hate Inu, a decentralized polling platform that will reward users with its LHINU token for participating in a range of surveys.
It opened the LHINU presale around a month ago, and it has already raised just over $6.7 million, making it one of the biggest token offerings happening right now.
That it can raise such an amount in such a short space of time suggests that investors are already drawn strongly towards Love Hate Inu, believing that it has a very good chance of becoming a successful platform when it launches in the next few months.
Love Hate Inu’s polling platform works via staking, with users who stake a higher quantity of LHINU receiving a larger voting weight when they participate in polls, as well as receiving a greater quantity of rewards.
Love Hate Inu aims to stand apart from its rivals by tapping into the viral power of memes and meme tokens, with its platform selecting the most timely and controversial polls in order to generate public interest.
Investors can take part in its presale by visiting the official Love Hate Inu website, where they can use USDT, ETH or fiat currency to buy LHINU.
The sale has now entered its sixth stage, with one LHINU token costing $0.0000135, although this will rise again to $0.0000145 in just over 19 days.
This means that investors don’t have long to grab some LHINU before it lists on exchanges, which is when it could end up seeing some really big price increases.
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Elroy Pekar