Although Ethereum prices have risen slightly over the past 24 hours, the asset has struggled to rise. Due to a death cross in early August and a decline in network liquidity, ETH faces the risk of a 50% crash to $1,340. Moreover, popular analyst Benjamin Cohen predicts that ETH could fall to $1,200 by the end of the year.
ETH's struggles come as the market is recovering following Bitcoin's recovery, and the upcoming Trump vs. Harris debate will likely be a key factor in determining which direction ETH goes next.
Will the Trump-Harris Debate Impact Ethereum Price?
Donald Trump will face off against Vice President Kamala Harris in the presidential debate today. According to a new Silver Bulletin poll, 61.5% of electoral voters support Trump's victory, compared to Harris' 38%.
But the popular vote figures showed a different outcome, showing Kamala leading Trump by 11.4%.
#latest Nate Silver 538 forecast:
Odds of winning:
Trump 64% (+29)
Harris 35%
.
Electoral votes:
Trump 282
Harris 256https://t.co/t2BOJDEpnT https://t.co/XsR4KwkNFS pic.twitter.com/nuPikShlJG— Politics Polls (@Politics_Polls) September 10, 2024
If Harris wins the debate, it could have a negative impact on the cryptocurrency market, including the price of ETH. Since taking office, the Biden-Harris administration has been cracking down on cryptocurrencies through the U.S. Securities and Exchange Commission.
Meanwhile, Trump is an outspoken and vocal pro-crypto candidate, as was evident at the Bitcoin 2024 conference in Nashville. A Trump debate victory could boost his approval ratings and his chances of winning the election in November, sending the crypto market and the price of ETH soaring.
ETH Price Potential Drop: On-Chain Metrics
Despite statistical data showing a strong chance of a Trump victory, the price of Ethereum continues to fall.
On-Chain Metrics Santiment A spike in whale trading on Sept. 9 and 10 could signal possible future price fluctuations.
moreover, Coin Glass On September 9th, the exchange had a positive net flow of $20.15 million. Positive net flows mean holders are moving ETH to exchanges, likely with the intent to sell, which is bearish for ETH price.
Ethereum market liquidity has fallen by 20% since the introduction of the Ether ETF. CC Data“While market liquidity for ETH pairs on centralized exchanges remains high compared to the beginning of the year, liquidity has fallen by nearly 45% since its peak in June.”
One of the reasons for the decline could be poor market conditions and a drop in trading activity, which is seasonal and typically increases in the summer months.
Reduced liquidity may make markets less able to process large buy or sell orders and increase their susceptibility to large transactions.
Ethereum Price Analysis: Will ETH Reach $1,340?
In addition to reduced liquidity, the price of ETH has also fallen by more than 25% since the ETF's launch, contributing to tough market conditions.
ETH price action showed a death cross on August 11, a notorious bearish signal. Additionally, the price chart shows that ETH broke out of a bearish pennant, or continuation pattern. Market Structure price objectives indicate that ETH price could fall 42% from its current price to $1,340. Is it possible that the cryptocurrency market hasn't bottomed out yet?
If any good news comes out of the Trump-Harris debate, Ethereum Price Prediction The asset is rising and breaking above the 50-day and 200-day exponential moving averages, signaling a possible death cross and invalidating the bearish theory. ETH price will likely surge to $3,600 and eventually hit $4,000, breaking new all-time highs.
Frequently Asked Questions (FAQ)
Ethereum price has risen slightly over the past 24 hours but is struggling to maintain the upward momentum as the asset faces major challenges, including the August death cross pattern and reduced network liquidity, which could lead to a 50% drop in price to $1,340.
The debate could affect the cryptocurrency market, including Ethereum. A strong performance from pro-cryptocurrency Trump could boost the price of Ethereum, while a win for Harris, who has been cracking down on cryptocurrencies, could negatively impact the price of Ethereum.
If this discussion yields favorable news for the cryptocurrency, Ethereum could rise, surpass the major moving averages and reach $3,600-$4,000, invalidating the bearish outlook.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep interest in blockchain technology, cryptocurrencies, and the video gaming industry. He has extensive experience working with various startups to deliver insightful, high-quality analysis that resonates with his target audience. An avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across various sectors. Outside of work, he enjoys playing video games and exploring beautiful waterfalls.
Disclaimer: The presented content may contain the personal opinions of the author and are subject to market conditions. Please conduct market research before investing in cryptocurrencies. The author or publication is not responsible for any personal financial losses.
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