As a seasoned analyst with over two decades in financial markets under my belt, I’ve learned to appreciate the complexities and unpredictability of market trends. The current state of Ethereum (ETH) presents an intriguing conundrum – on one hand, we have bearish indicators such as whale selling and TD Sequential signals suggesting a continued downtrend. On the other, there’s a promising development with less ETH being held on exchanges than BTC, potentially indicating a shift towards long-term holding.
In simple terms, the crypto market has been tough, and Ethereum, being the second largest digital currency, hasn’t escaped this difficulty either. Even though it holds a commanding position, the Ethereum token has encountered considerable obstacles in the past few weeks, with its value failing to indicate any sustained increase.
Key Metrics Point To Continued Bearishness
As reported by crypto expert Ali Martinez, it seems that a significant number of large Ethereum investors, possessing more than 10,000 ETH each, have been consistently offloading their Ethereum tokens during the last month without showing any signs of letting up.
Over the past month, a significant number of major investors withdrawing their funds has led to Ethereum’s price decreasing by approximately 26%. This has reduced its year-to-date growth to only 55%, making Ethereum one of the less successful cryptocurrencies in terms of performance during this time period.
Over the past seven months, the consistent selling by large Ethereum holders (often referred to as “whales”) has significantly influenced the token’s continuous holding pattern near the lower end of its price range.
The pessimistic feeling about Ethereum (ETH) is made worse by the TD Sequential indicator, as it’s shown a sell warning on its hourly chart. This could amplify the ongoing price drop.
In the future, Martinez has marked significant areas of potential support for Ethereum prices if they keep falling. Notably, he recommends keeping an eye on a key support area around $2,300 to $2,380, as approximately 1.62 million investors own more than 50 million ETH in this range.
As a researcher, I’m emphasizing the importance of sustaining our current position, as it could potentially shield us from another steep drop reminiscent of the one witnessed earlier this month, which plunged the price back to the $2,100 mark – a level not touched since February.
Potential Price Upside For Ethereum Ahead?
Despite these bearish factors painting a dark picture for the second-largest cryptocurrency on the market, market researcher Leon Waidmann claims that a significant development has emerged that could signal a potential bullish shift for Ethereum.
In a recent social media update on X (previously Twitter), the researcher shared an interesting finding: For the first time, less than 10% of the total ETH supply is stored on cryptocurrency exchanges. This significant milestone indicates that more Ethereum is now being held off-exchange compared to Bitcoin (BTC). Waidnmann pointed out this development.
It’s very optimistic to see that there’s much less Ethereum (ETH) on exchanges compared to Bitcoin (BTC). This could mean Ethereum investors are pulling out their tokens from trading platforms more, possibly hinting at a move away from quick speculation and towards holding Ethereum for the long term.
In essence, it’s uncertain which direction the ETH price will go next – whether the bulls or the bears will dominate the market. Their actions will determine the immediate trend for the token, potentially ending the current period of stabilization.
At the time of writing, ETH trades at $2,580.
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2024-08-20 02:10