Ethereum Loses Steam As Exchange Supply Spikes
June 30 2022 - 1:10PM
NEWSBTC
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” 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
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