Ethereum Loses Steam As Exchange Supply Spikes


Ethereum (ETH) is once again losing momentum after showing a positive bounce last week. At press time, ETH has a market capitalization of $125 billion and is currently trading 9% lower at $1032.

The world’s second largest economy is unequivocally losing steam, and if it can’t maintain $1,000, it could drop to $700 or even lower.

Ethereum drops below $1k

Over the past few hours, the price of Ethereum deviated from a major support level and fell below $1,000. This is why more selling pressure could cause a drop below $900 or even lower.

For a chance to refute the gloomy view, the second largest cryptocurrency by market capitalization needs to recover $1,100 in backing.

Ali Martinez, Market Analyst, reveals some important stats on the chain to look out for! Martinez stated that there has been a significant increase in the supply of ETH on exchanges recently, citing statistics from Glassnode. He said:

“More than 200,000 ETH dollar. More than $200 million worth of it has been sent to well-known cryptocurrency exchange wallets over the past five days.”

Source: Ali Martinez

The number of ETH addresses experiencing losses as a result of the current correction has also increased exponentially. This could lead to another sale. According to Ali Martinez:

Ethereum At risk of severe correction. Transaction history shows that nearly 468,000 addresses with more than 7 million #ETH They are now underwater and could soon begin to plow out of their positions. Higher selling pressure could lead to a pullback to $700 or even $600.”

ETH/USD trades above $1k. Source: TradingView

Related reading | TA: Ethereum major indexes point to a sharp drop below $1K

Ethereum whales keep piling up

Despite the current chaos in the ETH price, whales have continued to show their strength with sporadic accumulations. Note Santiment, a data source on the string:

Ethereum Sharks and whale titles (containing between 100 to 100 kilo ETH dollarThey collectively added 1.1% more coin supply to their bag in this -39% drop. Historical evidence indicates that this first level group has an alpha in future price action.”

Ethereum

Source: Santiment

Recently, the state of the global economy and market conditions look terrible. The latest figures show a significant drop in consumer confidence in the market, which could increase selling pressure on US stocks.

The ripple effects could continue as the cryptocurrency market is already experiencing a sharper correction.

Related reading | Why can Ethereum be traded for $500 if these conditions are met

Featured Image from Pixabay and Chart from tradingview.com, Santiment, Glassnode



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