The crypto market has been tumultuous in recent times, and Ethereum (ETH) has not been immune to the challenges. Despite being the second-largest cryptocurrency, ETH has been facing significant obstacles. One of the key issues that have been highlighted by crypto analyst Ali Martinez is the continuous selling of Ethereum by some of the largest whales in the market, who hold over 10,000 ETH. This selling pressure has led to a 26% drop in Ethereum’s price over the past month, resulting in a meager 55% year-to-date gain for the token.
The mass exodus of large investors in Ethereum has had a profound impact on the token’s price and market sentiment. The ongoing selling pressure from these whales has pushed ETH into a consolidation phase at the bottom of its trading range for the past seven months. This negative sentiment surrounding Ethereum has been further worsened by the TD Sequential indicator presenting a sell signal on the token’s hourly chart, potentially exacerbating the current downtrend.
Looking ahead, Martinez has identified crucial support levels that could come into play if Ethereum’s price continues to decline. One key support zone to monitor is between $2,300 and $2,380, where a significant number of addresses that hold over 50 million ETH are located. Maintaining this support level will be critical for bulls to prevent another sharp crash similar to the recent one that saw ETH’s price retracing to $2,100, a level not seen since February.
Despite the bearish outlook surrounding Ethereum, market researcher Leon Waidmann has pointed out a groundbreaking development that could potentially signal a shift towards a more bullish trend for the token. Waidmann highlighted on social media that, for the first time, the balance of ETH on cryptocurrency exchanges has dropped below 10%. This milestone is significant as it indicates that there is now less Ethereum held on exchanges compared to Bitcoin (BTC). Waidmann’s observation suggests that Ethereum investors are increasingly withdrawing their tokens from trading platforms, potentially hinting at a shift away from short-term speculation to long-term holding of ETH.
Ethereum is facing considerable challenges in the current market environment, with selling pressure from whales and a bearish sentiment prevailing. However, the potential shift towards long-term holding by investors could pave the way for a more positive trajectory for Ethereum in the future.