The cryptocurrency market has always been volatile, and Ethereum (ETH) has been no exception to the challenges. Despite being the second-largest cryptocurrency, ETH has been facing significant headwinds lately. According to crypto analyst Ali Martinez, some of the largest Ethereum whales, who hold over 10,000 ETH, have been consistently selling their tokens over the past month. This continuous selling pressure has contributed to a 26% price drop for Ethereum in the last 30 days, narrowing its year-to-date gains to just 55%.
The selling pressure from these Ethereum whales has played a significant role in the token’s consolidation at the bottom of the range it has been experiencing for the past seven months. This bearish sentiment surrounding ETH has been further reinforced by the TD Sequential indicator, which has recently presented a sell signal on the cryptocurrency’s hourly chart, potentially intensifying the current downtrend.
Looking ahead, Martinez has identified key support levels that could come into play if the Ethereum price continues on its downward trajectory. One crucial support zone to watch is between $2,300 and $2,380, where 1.62 million addresses have acquired over 50 million ETH. Maintaining this level will be crucial for bulls to prevent another sharp crash, similar to the one witnessed earlier this month where the price retracted to the $2,100 level, a level not seen since February.
Despite the bearish factors painting a dark picture for Ethereum, market researcher Leon Waidmann has pointed out a significant development that could signal a potential bullish shift for the cryptocurrency. He highlighted in a recent social media post that the ETH balance on cryptocurrency exchanges has dropped below 10% for the first time. This milestone is crucial as it signifies that the amount of Ethereum held on exchanges is now lower than that of Bitcoin (BTC). Waidmann expressed that this decrease in ETH on exchanges is a positive sign, indicating that Ethereum investors are moving away from short-term speculation towards long-term holding.
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