Ether (ETH), the cryptocurrency that powers the smart-contract-enabled Ethereum blockchain, has been under strong selling pressure in the last three days.
ETH/USD was last trading around $1,830, down over 2.0% on Monday and down more than 9% from last week’s highs to the north of the $2,000 level.
Two days ago, the Ethereum Foundation responsible for the blockchain’s development transferred $30 million to cryptocurrency exchange Kraken.
This appears to have triggered some jitters in the market, exacerbating selling pressure that has also been seen across other major cryptocurrencies like Bitcoin.
Meanwhile, a recent spike in gas fees as a result of a surge in meme coin trading (mostly focused around Pepe) may also be weighing on sentiment, as it highlights the scalability challenges the blockchain still faces.
Will Selling Pressure Crash the ETH Price?
Traders were quick to note that prior major Ethereum Foundation sales of ETH have coincided with near-term market tops, such as the foundation’s sale of 35,053 ETH in May 2021 (a local top) and then of a further 20,000 ETH in November 2021, which proceeded 2022’s aggressive bear market drawdown.
However, prior large Ethereum Foundation sales, such as in June 2019, December 2020 and March 2021, did not proceed big price drawdowns.
Indeed, after the December 2020 and March 2021 sales, the Foundation probably would have been kicking itself that it did wait just a little longer, as shortly after these sales the ETH price experienced an exponential upside.
For now, according to options markets, investors seem sanguine on Ether volatility risks.
Dominant cryptocurrency derivatives exchange Deribit’s ETH Volatility Index recent hit a record low of 51 on Saturday and remained at suppressed levels on Monday around 53.
Ether (ETH) Price Prediction – Where Next?
With Ether back below its 50-Day Moving Average convincingly for the first time since early March, the risks of a further drop are growing.
A test of the resistance-turned-support area around $1,700 could be on the cards, with traders eyeing upcoming US inflation numbers later this week as a potential bearish catalyst.
The US Consumer Price Index report on Wednesday is seen showing the headline MoM inflation rate accelerating to 0.4% from 0.1% one month ago.
While near-term downside risks have clearly gone up, longer-term Ethereum bulls should remain confident.
It would take a break below $1,500 to really threaten 2023’s bull market and this doesn’t seem likely at this point, so long as the broader macroeconomic story remains a net tailwind for crypto (i.e. a slow burning bank crisis and expectations for easier Fed policy ahead).
Ether (ETH) Alternative to Consider – AiDoge
While Cardano could perform well in the coming years with broader crypto markets expected to moon, investors should always seek to diversify their crypto portfolios.
One high-risk-high-reward investment strategy that some investors might want to consider is getting involved in crypto presales.
This is where investors buy the tokens of up-start crypto projects to help fund their development.
These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
One of their favorites at the moment is an up-and-coming meme coin project called AiDoge.
AiDoge (AI) is the crypto token at the intersection of the meme and artificial intelligence (AI) worlds.
Thanks to the revolutionary new concept of meme-to-earn that AiDoge introduces, observers think the meme coin start-up could prove transformative.
AiDoge is building a revolutionary new crypto-powered web3 platform that will allow users to share and vote on memes created by users via the platform’s breakthrough AI technology.
And users who create the best memes will be rewarded financially in the form of AiDoge’s native $AI token.
AiDoge’s platform “employs advanced AI technology for creating relevant memes based on user-provided text prompts,” the start-up says in its Whitepaper.
“Users provide text prompts for meme generation… the AI processes the input, creating relevant, engaging memes, making meme creation accessible to all”.
AiDoge’s platform is driven by the $AI crypto token, which is an ERC-20 token issued on the Ethereum blockchain.
According to AiDoge’s whitepaper, “$AI tokens serve as the primary currency within AiDoge, used to buy credits for generating memes… (ensuring) the platform’s sustainability and continuous development”.
Get in on AiDoge’s $AI Presale Now
To fund the development of its platform and generate buzz, AiDoge is conducting a presale that is already performing exceptionally well.
In just a few days since the launch, AiDoge’s presale has already raised a massive near $4.0 million, with users able to purchase $AI tokens with $ETH, $USDT (ERC-20), $BNB, $USDT (BEP-20) and using their bank card.
Meanwhile, amid all the buzz about AiDoge potentially being the next big meme coin, the start-up’s Twitter account has already amassed over 29,000 followers, despite only being created last month.
With the presale now in its second stage, investors can bag their $AI tokens for a bargain $0.0000272 each.
Given $AI is set to list across major exchanges at a price of $0.0000336, investors who get in now could be sat on paper gains of around 25%.