The current state of the crypto market has not been favorable for Ethereum (ETH), the second-largest cryptocurrency by market capitalization. Despite its position in the market, ETH has been facing significant challenges in recent weeks. One of the key factors contributing to this struggle is the continuous selling pressure from some of the largest Ethereum whales, who have been steadily offloading their holdings over the past month. This mass exodus of large investors has resulted in a 26% price drop for Ethereum in the last 30 days, narrowing its year-to-date gains to just 55%.
The bearish sentiment surrounding Ethereum is further exacerbated by the TD Sequential indicator, which has recently presented a sell signal on the cryptocurrency’s hourly chart. This signal has the potential to intensify the current downtrend, adding more pressure on the price of ETH. One key observation made by crypto analyst Ali Martinez is that Ethereum has been consolidating at the bottom of its trading range for the past seven months, indicating a lack of bullish momentum in the market.
Looking ahead, Martinez has highlighted crucial support levels that could come into play if Ethereum continues on its downward trajectory. One key support zone to keep an eye on is between $2,300 and $2,380, where a significant number of addresses have purchased over 50 million ETH. Maintaining this level will be crucial for bulls to prevent another sharp crash, such as the one witnessed earlier this month when the price retraced to $2,100 – a level not seen since February.
Despite the bearish indicators surrounding Ethereum, there is a glimmer of hope in the form of a significant development highlighted by market researcher Leon Waidmann. Waidmann pointed out that for the first time, the ETH balance on cryptocurrency exchanges has dropped below 10%, marking a significant milestone. This decrease in the amount of Ethereum held on exchanges, now lower than that of Bitcoin, could signal a shift away from short-term speculation towards long-term holding among Ethereum investors. This positive development could potentially lead to a bullish shift for Ethereum in the near future.
The current state of Ethereum appears to be challenging, with significant selling pressure from large investors and bearish technical indicators weighing down on the price. However, the decrease in ETH held on exchanges could indicate a shift towards a more positive sentiment among investors. Keeping a close eye on key support levels and monitoring market developments will be crucial in determining the future trajectory of Ethereum in the volatile crypto market.
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