The crypto market is challenging, 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 has shown no signs of a sustained recovery.
Key indicators point to continued bear market
After According to crypto analyst Ali Martinez, some of the largest Ethereum whales, who own 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 the ETH price falling by 26% over the past 30 days, reducing its year-to-date gain to just 55%, making ETH one of the weakest performing tokens during this period.
The Selling pressure of these Ethereum whales has been a key factor in the token’s continued consolidation at the lower end of the range it has experienced over the past seven months.
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This pessimistic sentiment around ETH is reinforced by the TD Sequential indicator, which shows a Sell signal on the cryptocurrency’s hourly chart, potentially reinforcing the current downtrend.
Looking to the future, Martinez identified important support levels that could come into play if Ethereum price continues its downtrend. According to Martinez, a crucial support zone lies between $2,300 and $2,380, where 1.62 million addresses have purchased over 50 million ETH.
Maintaining this level will be crucial for the bulls to avoid another sharp crashsimilar to the move earlier this month, which saw the price fall to the $2,100 mark – a level not seen since February.
Potential price increase for Ethereum in sight?
Although these pessimistic factors paint a bleak picture for the second-largest cryptocurrency on the market, market researcher Leon Waidmann claims that a significant development has emerged that could be a potential sign of a bullish turnaround for Ethereum.
The researcher explained in a recent Social media post on X (formerly Twitter) that ETH holdings on cryptocurrency exchanges have fallen below 10% for the first time. 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 than BTC on exchanges is a very encouraging sign. It suggests that Ethereum investors are increasingly withdrawing their tokens trading platforms, This may indicate a move away from short-term speculation and toward long-term holding.
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Ultimately, the next move in ETH price remains to be seen, whether the bulls or bears will gain the upper hand, dictate the token’s next short-term move and break out of the current consolidation phase.
At the time of writing, ETH is trading at $2,580.
Featured image of DALL-E, chart from TradingView.com
