In recent times, the cryptocurrency market has been quite challenging, and Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is not immune to these difficulties. Despite its strong market position, Ethereum has faced considerable challenges in recent weeks, with its price showing little sign of a sustained recovery.
Key Metrics Indicate Continued Bearish Trend
According to crypto analyst Ali Martinez, some of the largest Ethereum holders, commonly referred to as "whales," who possess over 10,000 ETH each, have been consistently selling their tokens over the past month. This trend shows no signs of slowing down.
The mass selling by these large investors has significantly impacted Ethereum's price, leading to a 26% decline over the past 30 days. This drop has reduced Ethereum's year-to-date gains to just 55%, placing it among the weaker-performing cryptocurrencies during this period.
The selling pressure from these whales has been a major factor in Ethereum's ongoing price consolidation, which has kept it at the lower end of its trading range for the past seven months.
Adding to the bearish outlook, the TD Sequential indicator has issued a sell signal on Ethereum's hourly chart, suggesting that the current downtrend may continue.
Looking ahead, Martinez has identified key support levels that could come into play if Ethereum's price continues to fall. He notes that a critical support zone to watch is between $2,300 and $2,380, where 1.62 million addresses have purchased over 50 million ETH. Holding this level will be crucial for bulls to prevent another sharp decline, similar to the one earlier this month, which saw Ethereum's price fall to $2,100—a level not seen since February.
Is There Potential Upside for Ethereum?
Despite the bearish factors currently affecting Ethereum, market researcher Leon Waidmann suggests there may be a positive development that could signal a potential shift towards a bullish trend.
Waidmann recently shared on social media platform X (formerly Twitter) that, for the first time, the amount of Ethereum held on cryptocurrency exchanges has dropped below 10%. This is a significant milestone, as the amount of Ethereum on exchanges is now lower than that of Bitcoin (BTC). Waidmann stated:
"The fact that there is significantly less ETH on exchanges than BTC is a very encouraging sign. It suggests that Ethereum investors are increasingly withdrawing their tokens from trading platforms, potentially indicating a shift away from short-term speculation and towards long-term holding."
Closing Thoughts
The future movement of Ethereum's price remains uncertain. Whether the bulls or bears will prevail in the short term will determine the next significant move and whether Ethereum can break out of its current consolidation phase.
