Ethereum finds itself in a precarious position despite Ripple’s recent victory driving market prices up, resulting in substantial profits for altcoin investors. Although the market briefly suffered a downturn during the weekend, it swiftly recovered, reigniting optimism. Nonetheless, Ethereum continues to face challenges in its current state.
Glassnode recently highlighted in a tweet that both large and mid-sized participants have started selling. The number of addresses holding over 1000 coins reached a five-year low during the early Asian trading hours on July 17th. Similarly, the addresses with more than 100 coins hit an eight-month low of 46,245 a few hours ago. This decline reveals the lack of confidence among these investors.
Additionally, it’s important to note that the total gas usage on the Ethereum network has dropped to a one-month low. This metric, consistently at multi-week lows, indicates a decrease in network usage, presenting another fundamental obstacle.
These recent challenges have prompted a correction, although Ethereum may not suffer significant setbacks. The dormant supply is displaying a positive trend, with the supply last active 5-7 years ago reaching a monthly peak of 10.5 million ETH.
Moreover, the supply last active 7-10 years ago achieved an all-time high of 3.9 million ETH, demonstrating the resilience of long-term holders despite market conditions. This suggests that Ethereum has the potential to mitigate its losses effectively.
Ethereum Struggles To Surpass $1959 Support Level
At the time of reporting, ETH was trading at $1931. However, it has struggled to establish $1959 as a support level. While it briefly surpassed this mark several times this year, it lacked the necessary momentum to sustain an upward rally. Only when this level is successfully conquered can Ethereum move towards its 2023 peak and potentially reach a new high.
However, if the fundamentals continue to decline and sellers continue to offload their holdings, ETH could decline to $1754 in the coming days.
