Will Ethereum turn bearish in the short-term? Analyzing key trends

• Ethereum’s short-term bubble risk signaled bearish sentiment.
• On the other hand, ETH flipped the 200 EMA on the 4-hour timeframe.

Ethereum [ETH] is hinting at shifting market sentiment Q4 2024 approaches, which is widely anticipated to be bullish.

Data analyzed by AMBCrypto showed that Ethereum flagged potential short-term fluctuations, with the ETH Short-Term Bubble Risk indicator flipping bearish.

This suggested that a brief correction could be on the horizon, despite the overall bullish outlook for the broader crypto market.

Source: IntoTheCryptoverse

A full flip to bearish sentiment seems unlikely without a significant market event. The current bullishness, however, is leading the narrative, leaving the question of what lies ahead for ETH as we gear up for Q4.

Ethereum in correction

Analyzing the ETH/USDT pair, Ethereum has recently broken above the 4-hour 200 Exponential Moving Average (EMA), a critical indicator of low to mid-term trends.

The price eyed the $2,800 range high at press time, a key level that ETH needs to break to exit the confirmed short-term correction.

If Ethereum successfully moves beyond this level, it could signal an advance toward the $3,000 price mark.

Source: TradingView

However, the MACD indicator currently shows a bearish outlook, with momentum favoring sellers, signaling that ETH might need more time to gain strength for a bullish reversal.

Buterin on solo staking in ETH

To boost security, Ethereum co-founder Vitalik Buterin has proposed strategies to reduce potential vulnerabilities, such as mitigating risks from large node operator bribery and increasing solo stakers.

Buterin’s post on X, formerly Twitter, read,

“Some thoughts on solo staking, what realistic value solo (+ small-business and community) stakers could provide to the network, and what changes L1 can make to better support solo stakers.”

Solo stakers are essential in maintaining Ethereum’s decentralization and censorship resistance.

Since they are independent of large organizations, solo stakers are less susceptible to regulatory pressure, which helps prevent transaction censorship.

Source: Dune

They also play a vital role in blocking 67% finalization, a critical defense that ensures malicious chains cannot take over the network without facing significant penalties.

This development in ETH staking means that mitigating risk in staking would mean bullish for ETH.

Social dominance and trading activity 

Furthermore, Santiment data indicates that Ethereum’s market value has rebounded to as high as $2,700, fueling growing interest in ETH across social media and trading platforms.

The margin and leverage activity in ETH wallets has also surged, reaching 7-week highs. These factors suggest that ETH could see its price rise higher once the short-term bearish correction concludes.

Source: Santiment

Read Ethereum’s [ETH] Price Prediction 2024–2025

Ethereum remains positioned for potential growth after navigating its current short-term correction phase.

As market activity increases, particularly with bullish social media and trading momentum, ETH is likely to see further upward movement in price in the coming months.