Ethereum price risks losing $3,500, end of the road for bulls?

For the past two weeks, the cryptocurrency market has been reeling in uncertainty, showing no clear commitment to any particular direction. The main digital resources Bitcoin and Ethereum price represent this indecisive nature with several short-bodied candles on the daily chart.

However, in the recent analysis shared by Ki Young Ju, CEO of CryptoQuant, the Bitcoin Thermo Cap Ratio was highlighted as an in-depth metric to understand Bitcoin’s valuation relative to its network fundamentals.

The Thermo Cap Ratio, rarely highlighted in traditional analyses, measures the cumulative security spending (or thermo cap) of miners relative to market capitalization. According to Ki Young Ju, Bitcoin is “not currently overvalued based on network fundamentals, despite recent price increases.”

Therefore, the market appears to be regaining its bullish momentum through the ongoing consolidation and may continue the existing rally shortly.

Read also: Top reasons why ETH price could reach a new all-time high soon

1) The price of Ethereum advances dangerously

Ethereum stands out as a decentralized platform that not only supports cryptocurrencies like Ether, but also enables the creation and execution of smart contracts and decentralized applications (dApps).

Ethereum (ETH)| Tradingview

The price of Ethereum traded at $3,762 on Tuesday, with a market capitalization of $452.1 billion. Amid the current market uncertainty, the leading altcoin has stabilized above the $3,700 support.

The daily chart projecting several rejection candles below $3700 indicates that buyers are actively defending support. A potential bounce from this support will push the ETH price by 8.5% to challenge the peak and resistance of $4,090. Note that breaking this barrier is crucial for buyers to resume the prevailing uptrend.

However, if the current consolidation continues, it would indicate weakness in buyers’ conviction, suggesting a potential break of the $3,500 support.

Read also: Ethereum Price Analysis: Can Bulls Push Price to $5,000 on RWA Narrative?

2) Cardan (ADA)

Cardan (ADA) is a third-generation blockchain platform known for its research-driven approach and commitment to security and sustainability. It features a tiered architecture that separates the settlement and compute layers, allowing for more flexible upgrades and maintenance.

THE Cardano price has been trading sideways for almost two months, resonating within two converging trend lines of the symmetrical triangle pattern. The altcoin bounced twice from the upper limit and three times from the lower limit, indicating that trades are following suit in the formation of this pattern.

Currently, the ADA the price is trading at $0.455, seeking support at the lower trend line. The Cardano coin currently holds a market capitalization of $16.27 billion and maintains its position as the tenth largest cryptocurrency.

In favorable market conditions, coin buyers are likely to break out of the overall trend line, signaling the end of the consolidation trend line. The post-breakout rally could take ADA price to $0.62, followed by $0.68.

Read also: Cardano (ADA) breaks May’s bearish streak, but the big twist is in sight

3) PEPE Coin (PEPE)

PEPPER coin is a meme-themed cryptocurrency inspired by the popular internet meme, Pepe the Frog. This project stands out for its community-oriented approach and its focus on the playful and irreverent culture that characterizes many meme-based digital assets.

PEPE Coin (PEPE)| Tradingview

An ascending trend line on the daily chart carries the current recovery trend line Price PEPPER. Coin buyers who witnessed adequate pullback support managed to lift the asset from the April low of $0.00000393 to the high of $0.00001725 recording a gain of 339%.

However, with the market correction, PEPE price returned 17% to $0.00001434, while the market capitalization plummeted to $6.035 billion.

The coin price approaching the above-mentioned trend line could once again support buyers with demand pressure. A potential bounce from the support will challenge $0.00001725 and aim for a higher target at $0.00002 followed by $0.000024.

Read also: Pepe Coin Price Prediction as Bullish Sentiment Breaks Out, Rally to $0.00002 Coming?

Take away

The ongoing market consolidation highlighted by Bitcoin price prediction and sideways Ethereum price action has stalled recovery momentum for most major altcoins. However, with on-chain indicators such as the Thermo Cap Ratio, the broader trend remains bullish and currently stabilizes for future movements. Therefore, the ongoing consolidation could strengthen buyers to restore recovery momentum and provide new entry opportunities for investors.

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