The cryptocurrency market has been a volatile space, and Ethereum (ETH), as the second-largest cryptocurrency, is not immune to the challenges it presents. In recent weeks, ETH has been facing significant hurdles, with its price struggling to bounce back. One notable observation made by crypto analyst Ali Martinez is the trend of large Ethereum whales, holding over 10,000 ETH, selling off their tokens consistently over the past month. This sell-off has played a significant role in ETH’s 26% price decline in the last 30 days, causing its year-to-date gains to narrow down to just 55%.
The mass exodus of these influential Ethereum whales has had a direct impact on the token’s price and overall market sentiment. The continuous selling pressure from these major investors has led to ETH’s current consolidation at the bottom of its trading range, a trend that has been ongoing for the past seven months. This bearish sentiment is further accentuated by the TD Sequential indicator, which has recently triggered a sell signal on Ethereum’s hourly chart, potentially intensifying the downward trend.
Looking ahead, Ali Martinez has identified crucial support levels that could come into play if Ethereum’s price continues on its downward trajectory. Martinez points to a key support zone between $2,300 and $2,380, where a significant number of addresses have accumulated over 50 million ETH. Maintaining this support level will be crucial for bulls to avoid another sharp price drop, similar to the one witnessed earlier this month, where ETH retraced to $2,100, a level not seen since February.
Despite the prevailing bearish outlook on Ethereum, market researcher Leon Waidmann has shed light on a significant development that could potentially signal a shift towards a more bullish sentiment. Waidmann highlighted in a recent social media post that the ETH balance on cryptocurrency exchanges has dropped below 10% for the first time. This milestone indicates that the amount of Ethereum held on exchanges is now lower than that of Bitcoin (BTC), hinting at a shift from short-term speculation towards long-term investment or “hodling.” Waidmann’s observation suggests a positive trend for Ethereum investors, as more holders are withdrawing their tokens from exchanges.
Ethereum’s current challenges are evident, with selling pressure from large whales and technical indicators pointing towards a prolonged consolidation phase. However, the decrease in ETH balance on exchanges signals a potential shift in investor behavior towards a more long-term outlook, offering a glimmer of hope for a bullish resurgence in the future.
