The challenging crypto market has not spared Ethereum (ETH), the second-largest cryptocurrency. Despite its position, Ethereum has been facing significant challenges in recent weeks, with its price failing to show any signs of a sustained recovery. Crypto analyst Ali Martinez highlighted that some of the largest Ethereum whales, holding over 10,000 ETH, have been steadily offloading their tokens over the past month, with no indication of slowing down. This mass exodus of large investors has played a role in ETH’s 26% price drop over the last 30 days, bringing its year-to-date gains down to just 55% – making it one of the weaker-performing tokens in this timeframe.
The relentless selling pressure from these Ethereum whales has been a key factor in the token’s ongoing consolidation at the bottom of the range it has been experiencing over the past seven months. This bearish sentiment surrounding ETH has been further intensified by the TD Sequential indicator, which has recently presented a sell signal on the cryptocurrency’s hourly chart, potentially exacerbating the current downtrend. Looking ahead, Martinez has highlighted some key support levels that could come into play if the Ethereum price continues its downward trend. He suggests that a critical support zone to monitor is between $2,300 and $2,380, where 1.62 million addresses have acquired over 50 million ETH. Maintaining this level will be crucial for bulls to ward off another sharp crash, akin to the one observed earlier this month, which saw the price retracing to the $2,100 level – a level not witnessed since February.
Despite the gloomy outlook painted by these bearish factors for the second-largest cryptocurrency in the market, market researcher Leon Waidmann has pointed out a significant development that could signal a potential bullish shift for Ethereum. In a recent social media post on X (formerly Twitter), Waidmann highlighted that for the first time, the ETH balance on cryptocurrency exchanges has dropped below 10%. This milestone is noteworthy as it signifies that the amount of Ethereum held on exchanges is now less than that of Bitcoin (BTC). Waidmann emphasized that this shift is a positive sign, indicating that Ethereum investors are increasingly withdrawing their tokens from trading platforms, potentially signaling a move away from short-term speculation towards long-term hodling.
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