Potential Hindrances to Ethereum's Price Surpassing $3,000 Identified Among Strategy Holders
Crypto Update: Ethereum's Rally Hits Resistance, Long-Term Holders Cashing Out
Ethereum's price race towards the $3K milestone has encountered speed bumps, with long-term holders jumping ship, causing turbulence. Let's dive into the nitty-gritty of Ethereum's current state.
Long-Term Holders Selling on the Rise
The Ethereum ecosystem is witnessing an surge in sell-offs, as the Liveliness metric reveals a spike, indicating higher selling activity among long-term holders (LTHs). This uptick is the most prominent in three months, hinting that seasoned investors are cashing out at current rates. Given LTHs form the backbone of an asset, their mass selling may exert pressure on Ethereum's price and hamper its momentum.
This selling frenzy often reflects doubts about immediate price hikes, potentially creating obstacles for Ethereum to maintain its rally and conquer higher resistances.
Ethereum's In/Out of the Money Around Price (IOMAP) analysis pinpoints a crucial support zone between $2,345 and $2,421. Approximately 64 million ETH tokens, valued at around $164 billion, were scooped up in this range. This substantial stake of holders is unlikely to let go with losses, providing robust support for Ethereum's price.
This support zone serves as a vital safety net, preventing Ethereum from plummeting significantly even if selling spikes further. Investors who purchased within this band have little incentive to liquidate their assets, contributing to price stability and curbing downward volatility.
Ethereum Needs Support to Keep Climbing
Ethereum's price has shot up by an impressive 42% over the past week, now trading at $2,577. The price needs to hold above the $2,500 support to continue its upward trajectory and eventually surmount the $2,654 resistance.
Ethereum is now just 16% away from the $3K target, but the selling pressure from LTHs poses a threat. Nevertheless, the robust support zone discussed earlier may keep the price afloat. Once selling settles down, Ethereum will have another chance to break new ground, provided it can solidify the $2,814 support.
However, if the broader market takes a turn for the worse, Ethereum risks encountering increased selling pressure as investors scramble to minimize losses. A tumble below $2,344 could trigger a chain reaction, propelling the price down to $2,141, damaging the bullish outlook and possibly ending the rally.
Crypto Exchanges
- eToro
- Plus500
- Arkham
- Moonacy
Disclaimer
This price analysis serves as informative content only and should not be construed as financial guidance. BeInCrypto strives for accurate, unbiased reporting, but fluctuations in market conditions can occur without prior notice. Always conduct thorough research and consult a professional before making any financial decisions. Please be aware that our terms, privacy policies, and disclaimers have beenupdated.
- With higher selling activity among long-term holders (LTHs) causing turbulence, some crypto investors might consider Ethereum token mining to capitalize on the current market conditions, as they navigate through the resistance in Ethereum's price rally.
- Amidst the selling frenzy, several crypto exchanges like eToro, Plus500, Arkham, and Moonacy could provide trading platforms for those looking to invest in Ethereum, potentially benefiting from its anticipated price hikes if the selling pressure diminishes.
- Given the substantial support zone between $2,345 and $2,421, it might be advantageous for long-term investors to accumulate more Ethereum tokens, anticipating their potential resale at higher prices in the future, once market sentiment improves and Ethereum regains its bullish momentum.
