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ETH tried to rebound several times, but failed. Now it still encounters resistance at the 4000 mark. Although the overall market is quite stable, as the second largest cryptocurrency, ETH still cannot turn the key psychological price of 4,000 into a support level that can hold up the price. In addition, LTH is still selling off, which has become a big obstacle for ETH to resume its upward momentum. Ethereum holders have been selling recently, and it can be seen from the exchange's net holding data that traders' practices have changed a lot in the past 10 days. The "exchange outflows" that used to indicate that everyone was increasing their holdings have dropped sharply. This slowdown means that investors no longer want to get on the bus. This also reflects that the market is still digesting the recent price fluctuations, and everyone is unsure about the short-term performance of Ethereum. While the outflow is decreasing, the inflow is increasing. This shows that more ETH is entering the exchange, probably wanting to sell it. This change usually means bearish pressure is building, as traders either want to lock in profits or less money to lose.  Image source: Glassnode Ethereum’s on-chain data shows that the vitality of the overall market is weakening. There is an indicator called "Consumption Age", which looks at whether tokens that have not been moved for a long time have been transferred. In the past 24 hours, this indicator suddenly surged. This is the third time in more than three months that such a large liquidity release has occurred, indicating that long-term holders who had been silent before began to sell their ETH. “The rise in "age of consumption" usually means that there will be a wave of people cashing out to stop profits, or cutting off profits to stop losses. Now that long-term holders have returned their ETH to market circulation, it can be seen that they are becoming increasingly impatient with the current situation where the price has not increased.  Source: Santiment Now the ETH price still cannot break through the key resistance. It has fallen below the support level of 3872. In the past week, the "King of Altcoins" has been staying below 4,000. This can also be seen that the vitality of the entire cryptocurrency market is weakening and price fluctuations have become smaller. Judging from the current selling pressure and lackluster inflows, ETH price may continue to fall to the support level of 3742. If this position is not maintained, it may fall even more severely, and the current bearish trend will become more obvious by then.  Image source: TradingView But it’s not without good news. If Ethereum holders can sell less, and at the same time more people want to buy and the demand increases, ETH may rebound to above 4,000. If it can really break through the resistance level of 4000, the price may then rise to 4221. This not only means there is hope for an optimistic recovery for ETH, but also a break from the current bearish trend. That’s it for today’s article, see you tomorrow  |
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