Ethereum Price Drops, Yet Investor Interest and Whale Confidence Persist
The Essentials in Brief
Ethereum (ETH), the leading altcoin, has recently experienced a price drop below the mark of 3,600 US dollars. Despite this decline, the number of addresses with a balance continues to rise. However, current market trends and indicators suggest possible selling pressure that could influence Ethereum’s price performance in the near future.
The Current Situation of Ethereum
After a temporary rise above 3,600 US dollars, the price of Ethereum has fallen by more than 2.4% in the last 24 hours and is currently trading at 3,547.34 US dollars. Despite this price drop, the number of Ethereum addresses with a balance has continued to rise, reaching a new high of over 118,230. This could indicate ongoing interest in Ethereum, despite the current market weakness.
What the Future May Hold for Ethereum
The analysis of market data shows that the selling pressure on Ethereum has increased as the amount of ETH held on exchanges has risen. This suggests that more investors are willing to sell their ETH. Interestingly, data shows that large investors, so-called whales, continue to have confidence in Ethereum as the proportion of ETH held by top addresses has increased.
Ethereum’s network-to-value ratio has seen a strong increase, which could suggest that the token is currently overvalued and a price correction may be imminent. The technical analysis also shows that the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) are trending downwards, indicating a possible weakening of the price.
Our Assessment
Although Ethereum has experienced a price drop in recent days, the increase in addresses with a balance shows that interest in Ethereum remains high. However, current market data and technical indicators suggest that increased selling pressure can be expected in the near future. Investors should closely monitor market developments and act cautiously as there is a possibility of a price correction. Despite the current uncertainties, Ethereum remains one of the leading cryptocurrencies with a strong ecosystem and long-term potential.
Sources: Glassnode, CryptoQuant, Santiment, TradingView
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