Ethereum Loses Steam As Exchange Supply Spikes

Ethereum

Ethereum (ETH) is once again losing momentum after exhibiting a positive bounce the previous week. At the time of publication, ETH has a market valuation of $125 billion and is currently trading 9 percent lower at $1032.

The second-largest economy in the world is unmistakably losing strength, and if it cannot maintain $1,000, it may go as low as $700 or even lower.

Ethereum Falls Below $1k

Over the past few hours, the price of ethereum has deviated from a key level of support and fallen under $1,000. This is why more selling pressure might cause a downturn below $900 or even lower.

To have a chance of refuting the dismal view, the second-largest cryptocurrency by market cap needs to retake $1,100 as support.

Ali Martinez, a market analyst, reveals some important on-chain statistics to look out for! Martinez stated that there has lately been a significant increase in the supply of ETH on the exchanges, citing statistics from Glassnode. He stated:

“More than 200,000 $ETH. worth over $200 million, have been sent to known cryptocurrency exchange wallets over the past five days.”

Source: Ali Martinez

The number of ETH addresses that have experienced losses as a result of the current correction has also increased significantly. This can result in another sell-off. According to Ali Martinez:

“Ethereum is at risk of a steep correction. Transaction history shows that nearly 468,000 addresses with more than 7 million #ETH are now underwater and could soon start exiting their positions. A spike in selling pressure could trigger a downswing to $700 or even $600.”

ETH/USD trades above $1k. Source: TradingView

Related reading | TA: Ethereum Key Indicators Suggest A Sharp Drop Below $1K

Ethereum Whales Continue To Accumulate

Despite the current chaos in the price of ETH, whales have persisted in demonstrating their might with sporadic accumulations. Santiment, on-chain data source, noted:

“Ethereum shark and whale addresses (holding between 100 to 100k $ETH) have collectively added 1.1% more of the coin’s supply to their bags on this -39% dip. Historical evidence points to this tier group having alpha on future price movement”

Ethereum

Source: Santiment

As of late, the state of the world economy and market circumstances appears dire. Recent figures show a significant decline in consumer confidence in the market, which could increase selling pressure on American equity.

The ripple effects can persist further because the cryptocurrency market is already seeing a more severe correction.

Related Reading | Why Ethereum Could Trade At $500 If These Conditions Are Met

Featured Image from Pixabay and Chart from tradingview.com, Santiment, Glassnode

Articles You May Like

Crypto lending platform Hodlnaut suspends services due to liquidity crisis
Dave Portnoy’s SafeMoon position is down 94%, claims he’s being sued by project
Bitcoin Miner Genesis Digital Assets Secured 708 MW in Capacity During the First Half of 2022
Bullish Expectations From The Ethereum Merge Rise Post Chainlink’s Announcement
Curve Finance exploit: Experts dissect what went wrong