The cryptocurrency market is a tough one, and Ethereum (ETH), the second-largest cryptocurrency, is no exception. Despite its dominance, the token has faced significant headwinds in recent weeks, with its price showing no signs of a sustainable recovery.
Key indicators point to continued downtrend
According to According to crypto analyst Ali Martinez, some of the largest Ethereum whales, holding over 10,000 ETH, have been steadily selling their tokens over the past month, with no signs of slowing down.
This mass exodus of large investors has contributed to ETH’s price falling 26% over the past 30 days, reducing its year-to-date gains to just 55% – making it one of the worst performing tokens over this period.
THE sales 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 over the past seven months.
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This bearish sentiment around ETH is further exacerbated by the TD Sequential indicator, which has exhibited a sell signal on the cryptocurrency’s hourly chart, potentially intensifying the current downtrend.
For the future, Martinez has identified key support levels that could come into play if Ethereum price continues its downward trajectory. According to Martinez, a crucial support area to watch is between $2,300 and $2,380, where 1.62 million addresses have purchased over 50 million ETH.
Maintaining this level will be crucial for bulls to avoid another sharp rise. accidentsimilar to that seen earlier this month, which saw the price retrace to the $2,100 level – a level not seen since February.
Potential for Ethereum Price Rise Ahead?
Despite these bearish factors that paint a bleak picture for the second-largest cryptocurrency in the market, market researcher Leon Waidmann says a significant development has emerged that could signal a potential bullish shift for Ethereum.
The researcher explained in a recent social media post On X (formerly Twitter), for the first time, the balance of ETH on cryptocurrency exchanges has fallen below 10%. This marks a significant milestone, as the amount of Ethereum held on exchanges is now less than that of Bitcoin (BTC). Waidnmann said:
The fact that there is much less ETH on exchanges than BTC is a very encouraging sign. This suggests that Ethereum investors are increasingly withdrawing their tokens from trading platforms, potentially indicating 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 take over, decide the token’s next short-term move 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
