Ethereum
Ethereum (ETH) Holders Lose Conviction and Are Ready to Sell
The price of Ethereum (ETH) disappointed investors, falling from nearly $4,000 to below $3,500.
This has led many holders to move their ETH to exchanges in order to minimize their losses.
Ethereum Investors Lose Confidence
Ethereum price drop is behind ETH Holders becoming increasingly skeptical, with many deciding to sell their holdings to make up for their losses.
If we look at the profit and loss indicator made on the network, profit taking has increased significantly in recent days. The metric’s spike is the largest in three months, with the last such sell-off seen in March when ETH was recovering. But this is due to declining optimism about future profits.
The Ethereum network made profits/losses. Source: Feeling
Those selling on the network and causing the most concern were the long-term holders. These investors tend to hold their assets for more than a year. Their HODLing during dips shows conviction and confidence in the recovery. On the other hand, their selling leads to a rapid rise in the downtrend, causing prices to fall further.
This is evident in the consumed age of ETH, as a spike shows an increase in supply movement within addresses. This tends to reflect a growing decline in investor conviction.
In the case of Ethereum, this increase in the indicator is not a good sign for the crypto asset. This shows that long-term holders are uncertain of a recovery in the future.
Learn more: What is the Ethereum Cancun-Deneb (Dencun) upgrade?
ETH Price Prediction: Another Drop
Ethereum price, trading at $3,578, is facing resistance from the 50% Fibonacci retracement level. With the growing pessimism of investors, this resistance could strengthen, force ETH to fail breach.
The likely decline will stop at $3,400, just above the 38.2% Fib level, which has been tested as support several times in the past.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
On the other hand, a successful breakout of the 50% Fib line marked at $3,582 and its move into support will invalidate the bearish thesis. This will allow Ethereum price to recover losses and go back to $3,800;
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