Ethereum (ETH) Price Might Be Ready for a Reversal as TD Sequential Presents Buy Signal

Ethereum price has been under pressure recently. It dipped to $2,387 amid a broader market downturn driven by speculation regarding Tether's regulatory scrutiny.

Ethereum price analysis reveals a potential buy signal and technical analysis suggesting a rebound from recent lows. However, a break below $2,000 could be concerning. Meanwhile, on-chain data from Santiment shows large transactions on the Ethereum network hitting a 6-week high amid recent price lows.

This activity suggests that large holders, typically defined as those holding $100,000 or more in crypto, have been accumulating Ether (ETH) throughout the recent price drop, indicating their belief in its future price growth.

The increase in whale activity coincided with a record number of new wallets being created on the Ethereum network. On October 26, 6,428 new wallets were created, marking the highest daily growth in new wallets since September 5.

This suggests that both current and potential market participants are utilizing the recent price decline to acquire Ethereum at lower prices. However, it’s worth noting that the number of whales is not a direct indicator of price movements.

The accumulation trend does indicate that big players are still bullish despite the recent price decline in the cryptocurrency. Several technical analysts also expressed bullish views on Ethereum, expecting a rebound if the market structure holds.

A price analysis shared by TradingView user Basictradingtv paints a positive picture, with the analyst expecting the second largest cryptocurrency to jump to $4,000 in the mid-term, a 60% rally from current price.

The analysis is based on the premise that Ethereum will fully retest previous bullish trends, opening up massive upside potential. However, the analyst highlights that if Ether price moves below $2000, it will be catastrophic to the bullish structure.

Besides price, Ethereum’s future is closely tied to the ongoing development of the network, especially the upcoming ‘Purge’. Vitalik Buterin shared details of the purge, a critical network upgrade that will reduce the blockchain’s data storage requirements.

This upgrade is designed to address Ethereum’s growing storage needs and ultimately enhance the network’s scalability over time.

The Purge will simplify running an Ethereum node for all participants by erasing data and network history, preserving the security levels of the network. Buterin also mentioned the possibility of a ‘stateless’ model, which could further reduce Ethereum’s storage needs, ensuring the network’s sustainability for years to come.

While these network upgrades may not directly impact price, they are crucial for maintaining Ethereum’s long-term scalability and attractiveness to developers and investors