The crypto markets are plunging down! Bitcoin formed lows below $92,000 after falling to sustain above the gains. Meanwhile, the latest rejection from $4100 appears to have largely impacted the Ethereum price rally as the token is expected to lose support at $300. On the other hand, the trader’s interest in the token has faded to a large extent as the transaction count and volume have depleted.
Active address count is an indicator that sheds light on the traffic over the platform, which in turn impacts the volatility of the token. A rise in the levels suggests an increase in the buy, sell, or swap trade over the platform, which may either increase or decrease the price. This change in prices attracts fresh volume over the token that is usually in favour of the bulls. Unfortunately, these levels have been declining since the last few days of 2024 and despite a rebound, it continued to form lower highs and lows.
This indicates a massive drop in the trader’s participation, due to which a notable drop in the transaction count has also been recorded. With this, the price is expected to maintain a consolidated trend and as the bearish influence over the markets has increased, the ETH price is expected to undergo a 10% pullback soon.
The weekly price action suggests the price is on its way to test the immediate support zone below $3000 between $2929 and $2814. However, a rebound is expected after reaching these levels that may elevate the levels back to $4000. This may complete the inverse head & shoulder pattern, which may further trigger a huge 50% upswing to mark fresh highs somewhere above $6500.
Previously, when the Ethereum (ETH) price broke down from the neckline of the head & shoulder pattern, that triggered a 60% pullback, forming the lows below $1000. Therefore, a reverse effect now may initiate a similar upswing to form a new ATH in the upcoming days.
