In the cryptocurrency market, the trend of Ethereum (ETH) has always attracted the attention of traders. Although Ethereum has achieved a certain degree of gains on the monthly chart recently, the market situation remains complex and volatile, with many potential risks.
Currently, Ethereum is trading at $2,404. Judging from the chart data, it has moderate gains on the monthly chart, is up 1.06% on the weekly chart, and is also showing an upward trend on the daily chart. However, it is important to note that it is still significantly below the recent high of $2,700 and even more so from the all-time high of $4,878.
In this situation, analysts have paid close attention to Ethereum's key support level. Among them, analyst Ali Martinez pointed out that $2,300 is a crucial support level for Ethereum. This is because 2.4 million addresses have purchased 52.6 million ETH tokens at $2,300. If Ethereum cannot stay above this level, once it falls below this key support level, it will trigger a massive sell-off. In order to minimize losses, investors will panic sell, resulting in huge selling pressure on Ethereum, and the price will fall further on the chart.
In addition to paying attention to key support levels, some market indicators of Ethereum also reveal potential risk information.
First, Ethereum’s exchange supply ratio has increased from 0.143 to 0.1443 over the past week. A rise in this ratio means that holders may be preparing to sell or take profits. Typically, this happens when investors move their ETH from private wallets to exchanges, which is often a bearish sign.
Secondly, Ethereum's exchange reserves have continued to increase throughout the week, reaching $18.7 million at press time. This phenomenon, coupled with the increase in the exchange supply ratio, further indicates that investors are moving their ETH to exchanges, a market behavior that is likely to lead to increased selling pressure and drive prices down.
Finally, Ethereum's MVRV long/short spread has been negative for the past month. Generally speaking, when long-term holders are losing money and short-term holders are making profits, it often leads to capitulation by long-term holders. They close their positions to cut their losses, which may lead to further price declines in the short term, although this may form a temporary bottom to some extent.
In summary, according to relevant analysis, Ethereum is currently trading within a downward channel for more than a month. And, with negative market sentiment, it is likely to fall before breaking this trend. If a pullback occurs, Ethereum may find net support at $2,325.
In summary, Ethereum traders need to pay close attention to the key support level of $2,300 and changes in related market indicators. Only in this way can they better grasp the trading opportunities of Ethereum in a complex and changing market environment and avoid losses due to possible selling.
