As a seasoned researcher with over a decade of experience in the crypto market, I’ve seen my fair share of bull and bear runs. Currently, the Ethereum price situation seems to be leaning more towards the latter. The spike in ETH held on exchanges and the uptick in profit-taking activities are clear indicators that a correction might be imminent. If this selling pressure continues, we could see ETH dropping as low as $2,600.
In a downward trend for the cryptocurrency market, Ethereum’s price might experience a significant decrease due to increased holdings of ETH on cryptocurrency exchanges and a rise in investors cashing out their profits. If this selling pressure persists, Ethereum could potentially drop to around $2,600.
Let’s examine technical and on-chain analysis to determine Ethereum’s (ETH) health and what’s next.
Ethereum Price Risks Correction As 110,000 ETH Flows to Exchanges
As a crypto investor, I’ve noticed that Ethereum’s price has taken a 25% dive from its yearly peak of $4,107, but it’s currently bouncing back at around $3,358. Right now, ETH is sandwiched between two crucial levels: the resistance at $3,613 and the support at $3,029. At this point, there’s no clear directional trend yet. If Ethereum manages to surpass the $3,613 mark, it might ignite an uptrend. Conversely, a drop below $3,029 could trigger a downward spiral.
Looking at the recent surge of 110,000 Ethereum in exchange-held supplies, a possible upcoming selloff might be imminent. Generally speaking, an increase in Ethereum stored on centralized platforms often indicates selling or cashing out profits, or using it as collateral. This trend tends to rise during market peaks when investors aim to cash out their gains. Conversely, the supply on exchanges decreases at market bottoms as investors prefer to hold onto their Ethereum rather than sell, opting instead to store them in cold wallets for safety.
As a result, ETH prices could continue to decline in the near future.
Ethereum Whales Book Profit After Recent Crash
On December 23rd and 26th, the Network Profit/Loss Indicator experienced significant increases, indicating a large scale of profit-taking actions among holders. A rise in this indicator signifies profit-taking, while a drop indicates a widespread selling off or capitulation.
In simpler terms, if Non-Performing Loans (NPL) are lower following a market crash, it could mean investors are giving up or selling off, creating an opportunity to purchase since the market might be undervalued. Conversely, when NPL increases after a drop in Ethereum prices, it suggests that investors are hesitant about a potential recovery and may anticipate further decreases in the value of Ethereum.
In summary, predictions indicate a potential decrease in Ethereum’s price. To trigger this decline, Ethereum must fall below the $3,029 support level, which could lead it to reach approximately $2,600. This bearish forecast is bolstered by increased Ethereum on exchanges and profit-taking actions among investors.
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2024-12-28 16:29