Is Ethereum’s price headed to $5k after Dencun upgrade?

Is Ethereum’s price headed to $5k after Dencun upgrade?

Table of Contents

Ethereum’s buy/sell ratio has seen a shift towards the negative as Ethereum's price soared past the $4,000 mark in the early days of March, hitting a 40-day low at 0.93% on March 14, just a day after the Dencun upgrade was implemented.

A negative taker buy/sell ratio indicates a predominance of selling over buying in the Ethereum perpetual swaps markets. This trend, especially notable during a price decline, suggests that the imbalance of sellers to buyers could exert downward pressure on the Ethereum Price - with analysts predicting Ethereum will drop below $4k.

Ethereum investors have started buying IBET to hedge against ETH losses - analyst are predicting that the $5m market cap token will rise to at least $90m in the next 3 months, making it the best performing altcoin investment.

<<< Buy IBET now - analysts tip it to almost 20x this quarter >>>

Ethereum Markets Witness Increased Selling Pressure Post-Dencun Upgrade

The aftermath of the Dencun upgrade has showcased a typical pattern of buying the rumor and selling the news, with Ethereum facing significant selling pressure.

This trend is further underscored by the substantial influx of ETH into exchange wallets, hinting at investors' inclination towards short-term trading ventures following the upgrade. The CryptoQuant exchange reserves chart, which tracks the real-time flow of tokens into exchange-held wallets, reveals a noticeable increase in ETH deposits.

At the week's start on March 10, exchanges housed approximately 13.8 million ETH, which escalated to 13.9 million by March 14, translating to a significant shift of 74,000 ETH into exchanges for potential short-term selling, valued around $290 million at current rates.

Such a notable increase in exchange reserves could lead to supply dilution, threatening a further price dip below $3,900 unless met with equivalent demand.

The Dencun Upgrade's Impact on Ethereum’s Future Pricing

Analyzing recent market trends, the enthusiasm surrounding the Dencun upgrade is unlikely to propel Ethereum's price to the $5,000 mark as previously hoped by some investors. The near-term outlook suggests a possible descent below $3,900, fueled by traders offloading their holdings into the market.

The $3,840 level emerges as critical support, with IntoTheBlock data indicating that about 1.7 million addresses acquired 676,500 ETH at an average price of $3,836. Should these investors engage in defensive buying to prevent losses, they might inadvertently catalyze a price recovery.

However, if Ethereum's value falls beneath $3,830, it could activate a series of margin calls and stop-losses, given the substantial number of investors who entered at this price point.

For a bullish resurgence, it is imperative for the market to solidify support above $4,050, thereby enabling a regaining of short-term market momentum.

InsanityBets Tipped to 20x This Quarter As Best Performing Altcoin

InsanityBets is poised to become the quarter's standout altcoin, with projections pointing towards an impressive 20x growth in 2024 alone.

This platform distinguishes itself by its commitment to rewarding its community, redistributing 85% of platform fees and 90% of house profits back to token holders.

Such a model ensures that participants can derive financial benefits, potentially turning losses into wins and encouraging bettors to make it their favorite platform to use for their crypto betting.

Designed to foster greater engagement and community expansion, InsanityBets’ approach aims to boost returns for everyone involved.

With a token price set at just $0.001 and a market cap of $5 million, the potential for substantial returns is significant. Should IBET obtain a 5% market share, early investors will see a 50x return on their investment.

Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the viewsof Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.

Investment Disclaimer
Related Topics: 

You may like