After showing a healthy bounce last week, Ethereum (ETH) is once again losing steam. As of press time, ETH is trading 9% down at a price of $1032 with a market cap of $125 billion.
The world’s second-largest is clearly showing signs of weakness and if it fails to hold $1,000 it can possibly move all the way to $700 and below.
Market analyst Ali Martinez shares some crucial on-chain data to watch for! citing data from Glassnode, Martinez said that there’s been a huge spike in the ETH exchange supply on the exchanges recently. He wrote:
More than 200,000 $ETH. worth over $200 million, have been sent to known cryptocurrency exchange wallets over the past five days.
Furthermore, there’s a huge rise in the number of ETH addresses that have come under losses with the recent correction. This could trigger another sell-off. Ali Martinez explains:
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Ethereum is at risk of a steep correction. Transaction history shows that nearly 468,000 addresses with more than 7 million #ETH are now underwater and could soon start exiting their positions. A spike in selling pressure could trigger a downswing to $700 or even $600.
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Ethereum Whales Continue to Buy
Despite the recent mayhem in the ETH price, whales have continued to show strength with periodic accumulations. On-chain data provider Santiment noted:
Ethereum shark and whale addresses (holding between 100 to 100k $ETH) have collectively added 1.1% more of the coin’s supply to their bags on this -39% dip. Historical evidence points to this tier group having alpha on future price movement.
The broader market conditions look beak as of now and global macro factors are playing a key role in it. As per recent data, the U.S. consumer confidence in the market has dropped considerably and this could put more selling pressure on U.S. equity.
With the crypto market already facing a steeper correction, the Ripple effects can continue further.
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