The second-largest cryptocurrency, Ethereum (ETH), has been struggling in the volatile crypto market. One of the key factors contributing to this struggle is the mass exodus of large investors, known as Ethereum whales, who have been steadily selling off their tokens. This selling pressure from whales holding over 10,000 ETH has led to a significant 26% price drop for Ethereum over the last 30 days. As a result, the token’s year-to-date gains have narrowed to just 55%, making it one of the weaker-performing cryptocurrencies in recent times. The ongoing consolidation at the bottom of the range experienced over the past seven months is a clear indication of the bearish sentiment surrounding ETH.
The TD Sequential Indicator and Bearish Trends
Adding to the bearish outlook for Ethereum is the TD Sequential indicator, which has recently presented a sell signal on the cryptocurrency’s hourly chart. This signal could potentially intensify the current downtrend for Ethereum, putting further pressure on its price. Analysts are closely watching key support levels to gauge the token’s performance in the coming days. According to Ali Martinez, a critical support zone to monitor is between $2,300 and $2,380, where a significant number of addresses hold over 50 million ETH. Maintaining this support level will be vital for bulls to prevent another sharp crash, similar to the recent retracement to the $2,100 level.
A Glimmer of Hope: Ethereum Balance on Exchanges
Despite the bleak outlook for Ethereum, there is a glimmer of hope on the horizon. Market researcher Leon Waidmann points out a significant development that could signal a potential bullish shift for Ethereum. Waidmann highlights that the ETH balance on cryptocurrency exchanges has dropped below 10% for the first time, marking a notable milestone. This decrease in Ethereum held on exchanges, now lower than that of Bitcoin (BTC), suggests a positive trend. Waidmann believes that the decreasing ETH balance on exchanges indicates a shift towards long-term investment strategies, away from short-term speculation. This withdrawal of tokens from trading platforms reflects a growing confidence among Ethereum investors in the token’s long-term potential.
Ethereum is facing significant challenges in the crypto market, as selling pressure from whales and bearish indicators weigh on its price. However, the decreasing ETH balance on exchanges could signal a shift towards a more positive trend for Ethereum, hinting at a possible bullish future for the token. Investors and analysts alike will be closely monitoring Ethereum’s performance in the coming days to assess its resilience in the face of market volatility.
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