Ethereum (ETH), the second most popular cryptocurrency based on the daily trading volume, shows signs of a significant decrease in the investor’s interest. Analytical platform CryptoQuant revealed that this may indicate that it is in an accumulation phase or that a market correction may be expected in the near future.
On-chain data from a one-month period show that large ETH holders, those who own over 100k ETH, are disinterested in Ethereum. Some specific retail addresses that buy frequently have also been limited in the past weeks.
On the other hand, mid-sized holders using between 10,000 and 100,000 ETH are still holding coins but the buying interest has stagnated significantly. On the other hand, sellers with 100 to ETH 1,000 tokens continue to sell across the market domain hence exerting a bearish pressure.
Ethereum’s Resilience Above $2,000
The rest of the crypto market is also suffering issues, while Bitcoin failed to hold above $60,000 as of press time. Even with the overall slump of the market, Ethereum remains stable at and above the $2,000 mark. This stability is attributed to the speculation of a possible cut in the Federal Reserve interest rate hence optimistic feeling from the investors.
Historically, the performance of Ethereum in the fourth quarter was mostly performing well. Q4 has been seen to experience an average price bounce of approximately 23.39% since 2016. It shows that there is still hope the market might turn around of cases. This is arbitrary and, however, less in line with the current trend.
ETH has shed over the last four months from $3,971 to the current value hovering around $2,278, therefore shrinking by 42.67% loss. The bearish tone in the market is however corroborated by the downward-sloping 20- & 50-day Exponential Moving Average.
Further downwards the selling pressure may reduce Ethereum by an additional 13%, bringing the price to a testing of a certain ascending support trend line which dates back to June of 2020. Moreover, ETH has more than doubled from this trendline in the past when it has reversed which makes this level potentially a good accumulation zone. However, an slip of this support is said to occur a deeper correction that may further destabilise the market.
The sentiment of investors that is reflected by Ethereum is rather cautious. In respect to history, there could be a bounce, but continuous market selloff accompanied with weak buying sentiment indicate fluctuation. Ethereum investors are keeping focus on key low supports in order to determine the future price trend.
