Is Ethereum a Bargain at $2,600? Increase in Selling Pressure Indicates…
Ethereum [ETH] has once again surged to over $2,600, indicating a potential upcoming price increase. However, recent movements of a significant amount of ETH to exchanges raise concerns about a possible sell-off affecting Ethereum’s future trajectory.
Analyzing CoinMarketCap’s data, ETH was trading near $2.6k with a market capitalization exceeding $313 million. Despite this, Ethereum’s rainbow chart suggests that the current price is still considered relatively low, hinting at a favorable opportunity for investors to accumulate before a bullish momentum takes over.
Recent reports from Whale Alert revealed a substantial transfer of 12,461 ETH, valued at over $32 million, from an unknown wallet to Coinbase, indicating a selling trend in the market. Santiment’s data further confirmed an increase in Ethereum’s supply on exchanges, coupled with a slight drop in supply outside exchanges, signaling a rise in selling pressure. Notably, the surge in ETH’s exchange outflows on specific dates in August reinforced the notion that investors were actively selling their holdings.
Despite the general selling sentiment among investors, whales, or large holders of ETH, have been accumulating the cryptocurrency, as evidenced by the growth in the supply held by top addresses. This behavior suggests that influential players remain optimistic about Ethereum’s future value and anticipate a surge in the near term.
Examining Coinglass’ derivatives metrics, Ethereum’s long/short ratio displayed an uptick, indicating a growing bullish sentiment in the market. Additionally, the drop in ETH’s funding rate alongside its price decline typically precedes a trend reversal, potentially leading to a bullish turn.
Looking ahead, Hyblock Capital’s data suggests that in the event of a bullish trend reversal, Ethereum’s price could target $2.9k. Conversely, if the bearish trend persists, the token might see a decline to $2.4k. These factors point to a crucial juncture for Ethereum as it navigates through selling pressure and anticipates potential market shifts in the coming days.
