The cryptocurrency market has been a challenge and ethereum (eth), the second-largest cryptocurrency, is no exception. Despite its dominant position, the token has faced significant headwinds in recent weeks and its price shows no signs of a sustained recovery.
Key metrics point to continued pessimism
x.com/ali_charts/status/1825542295321706864″ target=”_blank” rel=”nofollow”>According For cryptocurrency analyst Ali Martinez, some of the largest ethereum whales, holding over 10,000 eth, have been selling their tokens steadily over the past month, with no signs of slowing down.
This mass exodus of large investors has contributed to eth’s 26% price drop over the past 30 days, reducing its year-to-date gains to just 55%, making it one of the worst-performing tokens over this time period.
He Selling pressure of these ethereum whales has been a key factor in the token’s continued consolidation at the bottom of the range it has experienced for the past seven months.
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This bearish sentiment around eth is further exacerbated by the TD Sequential indicator, which has presented a x.com/ali_charts/status/1825219001951404441″ target=”_blank” rel=”nofollow”>sell signal on the cryptocurrency's hourly chart, potentially intensifying the current downtrend.
Looking ahead, Martinez has x.com/ali_charts/status/1824399991185526992″ target=”_blank” rel=”nofollow”>identified Key support levels that could come into play if ethereum price continues its downward trajectory. According to Martinez, a crucial support zone to watch is between $2,300 and $2,380, where 1.62 million addresses have purchased over 50 million eth.
Holding this level will be crucial for the bulls to avoid another sharp rise. crashsimilar to that seen earlier this month, which saw the price retreat to the $2,100 level, a level not seen since February.
Potential ethereum price upside in the future?
Even though these bearish factors paint 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 possible bullish turn for ethereum.
The researcher explained in a recent article x.com/LeonWaidmann/status/1825538816175903168″ target=”_blank” rel=”nofollow”>social media post On x (formerly twitter), it was reported that for the first time, the eth balance on cryptocurrency exchanges has dropped below 10%. This marks a notable milestone, as the amount of ethereum held on exchanges is now less than that of bitcoin (btc). Waidnmann said:
The fact that there is significantly less eth on exchanges than btc is a very encouraging sign. It suggests that ethereum investors are increasingly withdrawing their tokens from trading platforms, which could indicate a shift from short-term speculation to long-term holding.
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Ultimately, it remains to be seen what the next move for eth price will be, whether the bulls or the bears 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 of DALL-E, chart from TradingView.com
