The world of cryptocurrency has been a tumultuous one, with Ethereum (ETH) experiencing its fair share of challenges. Despite being the second-largest cryptocurrency, ETH has been struggling to regain its footing in recent times. The price of Ethereum has been on a downward trend, with no clear signs of a recovery in sight. One significant factor contributing to this downward spiral is the steady selling of ETH by some of the largest Ethereum whales, who hold over 10,000 ETH each. This mass exodus of large investors has caused ETH to drop by 26% over the last month, erasing a significant portion of its year-to-date gains.
The selling pressure from these large investors has resulted in ETH consolidating at the bottom of its price range for the past seven months. Adding to the bearish sentiment is the TD Sequential indicator, which has recently produced a sell signal on Ethereum’s hourly chart, potentially exacerbating the current downtrend. Analyst Ali Martinez has highlighted key support levels that could come into play if the price of Ethereum continues to decline. One crucial support zone to monitor is between $2,300 and $2,380, where a large number of addresses have purchased over 50 million ETH. Maintaining this level will be essential for bullish investors to prevent another steep crash similar to the one that occurred earlier this month when the price dipped to $2,100.
Despite the bleak outlook for Ethereum, there is a glimmer of hope on the horizon. Market researcher Leon Waidmann has identified a significant development that could potentially signal a shift in sentiment towards a more bullish outlook for ETH. Waidmann revealed on social media that the balance of ETH held on cryptocurrency exchanges has fallen below 10% for the first time. This milestone is noteworthy as it indicates that there is now less Ethereum held on exchanges than Bitcoin (BTC). According to Waidmann, this shift suggests that Ethereum investors are withdrawing their tokens from trading platforms, possibly moving away from short-term speculation and towards a long-term holding strategy.
Ethereum is currently facing various challenges that are weighing down its price and market sentiment. However, the recent shift in the balance of ETH on exchanges could be a positive sign for the future of the cryptocurrency. It remains to be seen whether Ethereum will be able to overcome its current obstacles and embark on a path towards recovery and growth.