On-Chain Metric Tips Ethereum To Form Price Bottom Below $2,000 – Here’s Why

The Bitcoin market is experiencing a significant correction, with a 10.4% price drop over the past week, leading analysts to identify potential local bottom targets. Prominent analyst Ali Martinez has highlighted possible downside levels of $55,900 and $44,700 as Bitcoin trades around $81,000 after reaching an all-time high of $126,198.07 in early October.

Bitwise Chief Investment Officer Matt Hougan has highlighted that Ethereum may lead the next cryptocurrency rally, driven by the upcoming Fusaka upgrade on December 3, which could significantly enhance Ethereum's revenue capture by 5 to 10 times. This upgrade is seen as a critical catalyst that investors are currently overlooking.

Ethereum's price has stalled at $2,818 as derivatives traders prepare for the upcoming week, indicating a period of consolidation amidst market volatility. This stability comes after recent fluctuations in the cryptocurrency market, where Ethereum has faced significant downward pressure, raising concerns about potential bear market conditions.

Bitcoin has experienced a rapid downturn, primarily attributed to excessive long positions taken by investors, as highlighted by Joao Wedson, CEO of Alphractal. Recent data indicates a significant imbalance in long versus short positions across exchanges, with approximately 71,000 BTC in longs compared to 27,900 BTC in shorts. This trend has contributed to Bitcoin's struggles in maintaining its price stability.

Bitcoin has rebounded from extreme oversold levels, showing signs of recovery as its price stabilizes. XRP has jumped 7%, while Zcash (ZEC) has surged 14%, indicating a positive shift in the cryptocurrency market after recent declines. This rebound follows a period of significant volatility, where Bitcoin's price dipped below $90,000, impacting altcoins like XRP and ZEC.

Bitwise's XRP exchange-traded fund (ETF) launched on the New York Stock Exchange (NYSE) amid a challenging cryptocurrency market, where Bitcoin's price has dropped significantly, leading to a narrative collapse for BTC and affecting altcoins like XRP. Despite the ETF's launch, XRP has seen a decline to $1.81, its lowest since April, reflecting broader market pressures.

XRP's price has fallen below $2, with analysts indicating that it may be entering the final stages of a corrective structure, potentially dropping to $1.81 before a bullish reversal occurs. Technical analysis suggests that the current price movements align with an Elliott Wave formation, indicating further downside is likely.

Bitcoin (BTC) has seen a significant drop, retesting the $85,000 level after fluctuating between $83,540 and $84,000, while Ethereum (ETH) is consolidating above $2,700. The overall cryptocurrency market is experiencing a downturn, with major coins struggling to maintain their values.