ETH breaches $2,579 resistance, triggering movement of dormant coins.
Age consumed metric spikes 400%, reaching 66.42 million.
Potential price targets: $2,320 if bearish, $3,102 if bullish momentum continues.
Ethereum has reached a critical juncture as its price surpassed the $2,579 resistance level on Monday, catalyzing a significant shift in market dynamics.
This breakthrough has prompted a wave of activity among long-term holders, with older, less active coins suddenly changing hands. The movement of these dormant assets, particularly their apparent flow towards cryptocurrency exchanges, raises questions about Ethereum’s short-term price trajectory.
The broader cryptocurrency market has witnessed a sentiment shift from neutral to greed, accompanied by increased trading activity. Ethereum’s price has responded with a surge recently. However, this price rally has had an unexpected consequence: the reactivation of long-held coins.
Ethereum’s age consumed metric shows surge
Santiment’s data reveals a remarkable 400% spike in Ethereum’s age consumed metric, reaching 66.42 million – its highest level since October 4. This surge indicates a substantial movement of previously inactive coins, suggesting that long-term holders are seizing the opportunity presented by the recent price appreciation.
However, the concurrent increase in Ethereum’s exchange netflow volume paints a potentially concerning picture. On Monday alone, 51,881 ETH coins, valued at over $135 million, were transferred to cryptocurrency exchanges.
Source: Glassnode
This influx of coins to trading platforms often signals an increase in selling pressure, as more investors appear to be liquidating their holdings than acquiring new positions.
Looking ahead, Ethereum’s price action may hinge on the balance between this emerging selling pressure and potential new demand. If selling activity intensifies, ETH could retest the $2,579 level as support. A failure to hold this threshold could lead to a further decline towards $2,320, representing a 10% drop from its current value of $2,616.
Conversely, if selling pressure subsides and fresh demand enters the market, Ethereum could invalidate the bearish scenario and continue its upward trajectory. In this optimistic scenario, ETH’s next major resistance lies at $3,102, presenting a significant upside potential for the asset.
