The cryptocurrency market has been full of challenges, and Ethereum (ETH), the second-largest cryptocurrency, is no exception. Despite its dominant position, the coin has faced significant headwinds in recent weeks, and its price shows no signs of a sustainable recovery.
Key metrics point to a continuation of the downtrend.
According to Cryptocurrency analyst Ali Martinez says some of the biggest Ethereum whales, who own more than 10,000 ETH, have been steadily selling their tokens over the past month, with no sign of slowing down.
This mass exodus of large investors has contributed to a 26% drop in ETH price over the past 30 days, narrowing its year-to-date gains to just 55% — making it one of the underperforming tokens in this time frame.
the selling pressure The rapid growth of Ethereum whales has been a major factor in the coin’s ongoing consolidation at the bottom of the range it has seen over the past seven months.
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This bearish sentiment surrounding ETH is exacerbated by the TD Sequential indicator, which provided Sell signal On the hourly chart of the cryptocurrency, which could intensify the current downtrend.
Looking to the future, Martinez has It has been identified. Key support levels that could come into play if Ethereum price continues its downward trajectory. According to Martinez, the crucial support area to watch is between $2,300 and $2,380, where 1.62 million addresses have bought over 50 million ETH.
Maintaining this level will be crucial for bulls to prevent another sharp wave. It is shatteringsimilar to what we saw earlier this month, which saw the price return to the $2,100 level – a level we haven’t seen since February.
Is Ethereum likely to see a rise in the future?
Although these bearish factors paint a bleak picture for the second-largest cryptocurrency in the market, market researcher Leon Weidman claims that an important development has emerged that could signal a potential bullish turn for Ethereum.
The researcher explained in a recent study Posted on social media X (formerly Twitter) announced that the ETH balance on cryptocurrency exchanges has dropped below 10% for the first time. This is a remarkable achievement, as the amount of Ethereum on exchanges is now less than the amount of Bitcoin (BTC). Waidnmann said:
The fact that there are significantly fewer ETH on exchanges than BTC is a very encouraging sign. It suggests that Ethereum investors are increasingly withdrawing their tokens from Trading platforms, This potentially indicates a shift away from short-term speculation towards long-term holding.
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Ultimately, we still have to see what the next move for ETH price will be, whether it is the bulls or the bears who will gain the upper hand, decide the next short-term move for the token, and break the current consolidation phase.
At the time of writing, ETH is trading at $2,580.
Featured image by DALL-E, chart by TradingView.com