While the price of Ethereum (ETH) has not seen the gains that holders expected, recent data shows that investors holding the altcoin have remained resilient and bullish.
This may come as a surprise, especially since the Ethereum Foundation, which is leading the ETH sale, has liquidated some of the holdings again. While the selloff initially raised valid concerns, this analysis explains why holders are not worried about the massive selloff.
Another selloff leaves Ethereum holders unfazed
Earlier today, the Ethereum Foundation sold 100 ETH for $262,474. This sale is just a small portion of the coins the foundation has released in recent months. According to Spot On Chain, the total number of ETH sold this year has reached 3,766.
With an average price of $2,777, 1,250 ETH were sold in September, valued at $3.06 million. In total, the foundation sold 3,766 ETH in 2024, with the total value reaching $10.46 million.
This consistent selling trend could indicate strategic profit-taking or covering operational costs, but it could also impact the supply and market price of Ethereum in the future.
Ethereum Foundation Transactions. Source: Spot On Chain
However, according to Net Unrealized Profit/Loss (NUPL), ETH holders seem optimistic about the coin’s potential. Based on data from Glassnode, NUPL is the sentiment investors have about a cryptocurrency.
This perception ranges from capitulation (red), hope (orange), optimism (yellow), belief (green), and euphoria (blue). As seen below, ETH holders are in the bullish region, indicating confidence in a higher price for the cryptocurrency.
Read more: Ethereum (ETH) Price Prediction – 2024/2025/2030
NUPL do Ethereum. Fonte: Glassnode
Furthermore, the Historical In/Out of Money shows that the proportion of holders in profit has increased from 60% on September 16 to 64.37% today. The HIOM, as it is commonly called, shows the level of unrealized gains or losses in the market.
If the level of unrealized losses increases, it could shake investor confidence. However, since unrealized profits have been increasing recently, more investors may be encouraged to buy ETH, and this could drive the price higher.
Historical In/Out of Money do Ethereum. Fonte: IntoTheBlock
ETH Forecast: Ready to Break $3K
An analysis of the weekly Ethereum chart has revealed that the Commodity Channel Index (CCI) has increased. The CCI is a technical indicator that measures the difference between the current price and the historical average value.
When it increases, the asset’s price has a good chance of rising. On the other hand, a drop in the CCI indicates weakness. With the altcoin price at $2,632, a further increase in the CCI could lead to a run for ETH towards $3,255.
Ethereum Daily Price Analysis. Source: TradingView
However, if the indicator fails to break above the signal line at the midpoint, Ethereum could decline. In this scenario, the coin’s value could drop to $2,301.
The article Ethereum Foundation Sells $10 Million in ETH – How Does It Affect the Price? appeared first on BeInCrypto.
