ETH Price Tanks to $1,540 Amid Major Capitulation, Ethereum Reversal Possible?

The world's second-largest cryptocurrency Ethereum has once again come under major selling pressure with the ETH price tanking over 2% and dropping all the way to $1,540 levels. While the Ethereum bulls tried to put up a major fight above the $1,600 level, they failed to regain the lost ground.

Timeline of Ethereum

As crypto markets sink deeper into the red, analysts are predicting more pain for altcoins, while the outlook for Ethereum price doesn't look good in the short term. Moreover, total market capitalization has slumped to its lowest point in six months.

Coinbase Cloud, the cloud division of the popular cryptocurrency exchange Coinbase, has made a significant move to democratize Ethereum (ETH) staking by integrating Kiln's On-Chain Staking platform.

As of Monday, Coinbase Cloud clients can now let their customers stake however much ether they want, even if it's far below the 32 ether threshold needed to participate and earn rewards on the network.

Ethereum's price has taken a notably bearish turn, breaching several critical support levels and tilting on the verge of a concerning death cross. Despite these developments, there is a glimmer of hope as the price approaches a substantial support zone, hinting at the possibility of a temporary consolidation phase.

Predicting profitability in the cryptocurrency market is often likened to reading tea leaves. The roller-coaster journey of Ethereum (ETH) since its 2014 inception perfectly captures this unpredictability.

Amidst a broader market downturn, Fidelity Digital Assets, the cryptocurrency branch of investment behemoth Fidelity Investments, suggests that Ethereum is trading below its intrinsic value.

Pseudonymous cryptocurrency researcher Hildobby, data scientist at Dragonfly VC fund, demonstrates the most generous gas spenders on the Ethereum (ETH) network. Besides "technical" addresses associated with wallets controlled by largest CEXes, the operator of an MEV bot becomes the #1.

The cryptocurrency-focused arm of the renowned investment titan Fidelity Investments, which has over $4.5 trillion in assets under management, has recently suggested the second-largest digital asset by market capitalization Ethereum ($ETH) is trading at a discount.

ETH price, although rangebound between support at $1,600 and resistance at $1,700, shows signs of an upcoming trend reversal. An earlier attempt to steady the bullish outlook came to a sudden halt, with Ethereum retracing to confirm short-term support at $1,600.

Ethereum (ETH) has seen a gradual resurgence in price over the past five days, demonstrating resilience by holding firm around the $1,610 support level. Nonetheless, Ethereum's funds have been experiencing a dwindling trend in cash inflow over recent weeks.