During the previous week, large holders known as whales have dispensed with more than 440,000 units of Ethereum, leading to a notable shift in the market dynamics.
Recent data reveals that a single wallet traded 8,074 ETH at an average cost of $2,431, while another moved 10,000 ETH equivalent to $23.44 million to the Binance exchange within a mere two days.
As of the latest update, the price of Ethereum (ETH) stood at $2,354.64, marking a 5.46% decline in the past 24 hours.
The significant wave of selling has sparked concerns among some, yet there are investors who maintain hope that Ethereum could find stability at its current price levels.
Market Sentiment Insights: Are Traders In or Out?
An analysis of Ethereum’s in/out-of-the-money statistics sheds light on the prevailing market sentiment. Presently, 43.5% of wallet addresses are “in the money,” with a concentration existing between price points of $2,479.31 and $2,628.70.
However, a significant 36.82% of addresses find themselves “out of the money,” particularly those holding ETH acquired within the range of $2,479.31 to $3,024.48.
This data points towards a sizeable segment of investors who are currently at a loss, potentially intensifying selling pressure if the price downtrend persists.
ETH Price Movement: Is Support Holding Firm?
Ethereum has experienced a downward trajectory, with its price teetering around the crucial support level of $2,347.21. A failure to hold at this point may trigger a decline towards the next significant support at $2,272.32.
However, there are recent indications that the price has rebounded from the $2,347.21 threshold, hinting at the potential resilience of the support level.
In the near term, Ethereum might encounter resistance around the $2,479.31 mark. A breakthrough at this level could pave the way for a market reversal.
Active Engagement and Transactions: Evaluating Market Activity
Despite the price slump, Ethereum’s network utilization remains steady. Active wallet addresses have seen a 1% uptick in the past day, with 21,283.3K distinct addresses interacting within the ecosystem.
Moreover, the total transaction volume has increased by 0.96%, indicating that investors, though cautious, continue to participate actively in Ethereum activities.
This level of activity implies that the fundamental aspects of Ethereum remain robust, suggesting a potential market turnaround with a restoration of confidence. While selling pressure looms, the engagement levels reflect ongoing involvement by retail investors.
Ethereum’s Potential Rebound from Support
Considering the current market conditions and the recent price movements of Ethereum, there is a likelihood of a resurgence following the touchpoint at the support range of $2,347.21.
Selling pressure could be partially influenced by the Bybit hacking incident, impacting $1.4 billion worth of ETH and causing a ripple of nervousness across the market.