Ethereum could stage another rally following key insights from Glassnode's Q3 market guide

• Ethereum clocked nine years today after overcoming several challenges and implementing key network upgrades.
• Glassnode's Ethereum Q2 insights indicate that $ETH may have a productive Q3 ahead.
• Ethereum is forming a rounding bottom on the daily chart, indicating a potential bullish reversal.

Ethereum is down 1.5% on Tuesday despite several market participants acknowledging its ninth anniversary. Meanwhile, Glassnode shared key $ETH Q2 insights that may prove beneficial as the market takes shape in Q3.

Daily digest market movers: $ETH birthday, Q2 insights

Ethereum clocked nine years today after the Mainnet launch on July 30, 2015, when its first block was mined.

Since then, Ethereum has grown to a whopping market capitalization of $225.5 billion, implementing several upgrades along the way, including:

• Smart contract introduction
• The DAO hack and Hard Fork
• The Merge (Transition to Proof of Stake)
• Introduction of Layer 2 scaling solutions
• Shanghai Upgrade (Enabled withdrawal of staked $ETH)
• Dencun upgrade (Introduced blob and reduced gas fees)

Upcoming upgrade includes Pectra, which will increase the limit of maximum number of staked $ETH per individual validator from 32 $ETH to 2,048 $ETH and enable addresses to become smart contracts temporarily.

Meanwhile, in a recent report, Glassnode and Coinbase shared insights on how Ethereum has fared in the current market cycle and Q2 2024:

• $ETH's price has risen by 240% since reaching the current cycle's low in November. According to the report, the current market cycle is similar to the 2018-2022 cycle, when $ETH reached a high of "6,000% from the cycle's low."
  
• $ETH's 31% annual return and 29% drawdown in 2024 are quite tiny compared to returns and drawdowns that marked the peak and exhaustion of previous cycles. Hence, $ETH may have more room for price growth.
  $ETH Returns & Drawdowns" src="https://cnews24.ru/uploads/6de/6defdae204192f8b42ec8ed5ddd02cb0e547f6f6.png" size="583x407">
• $ETH's Market Value to Realized Value (MVRV) broke below its six-month Simple Moving Average (SMA). This means that most investors acquired large volumes of $ETH below its current market price, indicating a potential market transition point. A break above the six-month SMA would bring several of these coins into profit.
  $ETH MVRV" src="https://cnews24.ru/uploads/a4d/a4dea99889f0a92f66cdbc97de85c979956bbbb3.png" size="871x570">
• In Q2, the total $ETH staked increased by 5% to about 33 million $ETH.
• Ethereum perpetual futures volume decreased by 8% in Q2 after rising by 69% in Q1 — probably due to choppy price movements. On the other hand, $ETH's Open Interest (OI) rose to a new all-time high of nearly $14 billion in Q2, while the average daily OI increased by 37%.
  $ETH Futures Q2 metrics" src="https://cnews24.ru/uploads/9cf/9cf1fa01c401de8b692eeb392f905f14c497d966.png" size="598x447">

These insights and the launch of spot Ethereum ETFs show $ETH may have a productive Q3 ahead.

$ETH technical analysis: Ethereum is bullish in the long term

Ethereum is trading around $3,268, down 1.5% on the day. The slight decline has seen $ETH sustain $30 million in liquidations, with long and short liquidations accounting for $24.5 million and $5.8 million, respectively.

$ETH is bearish on the daily chart as the 50-day SMA is above its price and falling, indicating a possible resistance to upward price movement.

$ETH/$USDT Daily chart" src="https://cnews24.ru/uploads/b50/b5092be743f3101d9e2c3eddb51f313f1e7ed75f.png" size="1281x571">

$ETH/$USDT Daily chart

However, Ethereum is forming a rounding bottom on the daily chart, which is considered a bullish reversal. If the upward trend continues, $ETH could challenge its yearly resistance of $4,093, reached on March 13. On the downside, $ETH could find support around the $2,803 to $2,852 range.

In the short term, $ETH could rise to $3,368 where there's a liquidation wall of $25.72 million.