Why did ETH drop sharply yesterday and today? And can it rise to $5,000?
1⃣ Over the weekend and on Monday, ETH decreased by ~3.6% after a recent surge to $4,953 — an all-time high. This was caused by the selling of a large 'whale' and profit-taking even amid expectations of a rate cut by the Fed.
2⃣ On-chain data shows a significant outflow of ETH from exchanges (–138,656 ETH), which reduces selling pressure and can serve as a foundation for growth.
3⃣ Technically, a breakout of the $4,800–$4,900 zone could open the way to $5,500–$6,000, and some forecasts already see $5,200 by the end of August.
The question in the background: is this a random pullback or a pause before a breakout? According to many scenarios, ETH could test and surpass $5,000 in the coming weeks.
What do you think? Is Ethereum capable of returning to $5k this year? Share your opinion! 😉
#ETH $ETH
