The large transfer of 108,000 ETH signals potential selling pressure as Ethereum struggles to hold onto key resistance levels. Ethereum’s recent transaction fees reached $45 million, highlighting the increase in network activity.
Ethereum has recently experienced notable changes in the market, as 108,000 ETH (worth approximately $259.2 million) was transferred to various crypto exchanges within 24 hours. The community is concerned about the possibility of selling pressure that could cause a decline in the Ethereum price thanks to this large-scale token flood.
On-chain analyst Ali Martinez highlighted this move, noting that it reflects changes in market activity as remittances were significantly higher than in the past few days.
Source: Ali Martinez of X
ETH faces major resistance level amid increased market activity
Ethereum is trying to maintain a significant resistance level. Therefore, this important movement occurs instantaneously. ETH price fell from $2,600 to around $2,300 earlier this month, marking a rapid reversal.
If the selling pressure increases, market watchers observe that this could indicate more negative risks for Ethereum and thus the price could fall to the $2,200 level.
Large-scale crypto transfers to exchanges have long been interpreted as evidence that holders are perhaps preparing to sell their holdings, potentially causing prices to fall as supply increases on exchanges. There is a gender.
Some analysts believe that despite these negative signs, Ethereum can recover. Several traders are speculating that Ethereum could return to all-time highs and reach $4,000 in the coming months. Still, this means the cryptocurrency will overcome significant resistance levels at $2,400 and $2,850.
If Ethereum can recover these levels, it could reverse the current slide and create the conditions for a more general recovery. Ethereum has been resilient in the past, outperforming Bitcoin in some market conditions, leading some investors to believe that Ethereum may pick up pace after this economic downturn.
Underperformance continues despite initial optimism following spot ETF approval
Conversely, Ethereum is said to be one of the most disappointing large-cap cryptocurrencies of 2024. This underperformance is in sharp contrast to early expectations for Ethereum spot ETFs, which were thought to generate higher demand for the coin.
Despite following Bitcoin during the market upswing, Ethereum experienced even more severe declines during the market downturn. Some investors believe that Ethereum may come under further selling pressure before a stable price floor is found.
Meanwhile, at the time of writing, Ethereum price was around $2,414, down 9.62% over the past seven days. Even in this economic downturn, the foundations of our network remain extremely powerful.
According to our previous report, Ethereum transaction fees were found to be an astonishing $45 million, indicating growth in network activity and potential for future expansion.
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