Ethereum Price Faces Rough Road As Holders Stop Buying ETH Since Sept. 2022

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  • Ethereum’s accumulation slows as long-term and short-term holders stop buying.
  • Ethereum’s leverage ratio drops, indicating increased caution among traders.
  • World Liberty continues buying ETH despite $31 Million in losses.

Ethereum’s market outlook faces challenges as interest from holders wanes and the leverage ratio drops.

However, large stakeholders like World Liberty continue to accumulate ETH, indicating confidence despite broader market uncertainty.

Meanwhile, over the past 24 hours, Ethereum price saw a 5.22% rise, reaching $2,707.75, maintaining a solid price range between $2,159.28 and $3,743.94 in the past 30 days.

This price movement highlights the token’s resilience and ongoing investor interest, suggesting it remains a strong contender in the market.

Ethereum Price Faces Declining Interest and Market Shifts Post-Merge

Ethereum’s growth path after the Merge has become a cause for concern as its collecting pace substantially decreased.

Alphractal data demonstrate that Ethereum holders of different durations ceased their buying behaviors starting in September 2022.

ethereum: supply of age bands
Source: Alphractal

A proof-of-stake network upgrade may have harmed investor confidence, thus causing the token interest to decrease.

The cryptographic market’s top position of Ethereum remains uncertain since market demand has stagnated while affecting its future price stability.

Big investors of the cryptocurrency clearly show less buying activity in the market.

Exchange addresses, together with former miners and wallets possessing more than 100,000 ETH coins, have dramatically reduced their purchasing behavior in the market.

ethereum
Source: Alphractal

According to Ethereum supply data, the staking activities have declined. The size of the token supply pool that is trading freely continues to grow while the amount of tokens participating in staking continues to decline.

The market stability of Ethereum faces potential risk because of increased liquid ETH supply, which could generate market volatility effects.

Ethereum’s Leverage Ratio Declines, Indicating Caution Among Traders

Analysis of the leverage ratio in Ethereum indicates changing market moods because of its recent significant decrease.

The CryptoQuant data records the leverage ratio increasing to 0.65 during November 2022 only to fall to approximately 0.55 at the start of January 2023.

The reduction in borrowing activity occurs as traders avoid using leveraged positions despite Ethereum’s price maintaining a $3,200 price range.

ethereum price
Source: CryptoQuant

Following an increase in the risk of liquidation, stakeholders show greater caution through a reduction in their trading behavior. The market uncertainties drive traders to decrease their exposure levels across their positions.

The reduction in leverage activity will lead to decreased price volatility across the token since aggressive betting with borrowed money produces excessive market shifts.

Ethereum’s Price Path to Altseason and its Role in the Market Cycle

Ethereum’s market cycle evolution continues as the altseason path transitions toward its second developmental phase. The initial phase of market flow primarily entered Bitcoin and triggered price surges but Ethereum struggled to match the performance.

The latest phase shows Ethereum surpassing Bitcoin yet investors speculate about Ethereum’s ability to surpass Bitcoin in a move known as the “flippening.”

Market participants have started shifting a part of their Bitcoin investment towards Ethereum as they conduct notable purchasing activities in large-cap cryptocurrencies that include Ethereum.

The market’s shifting attention has initiated phase three, which shows Ethereum, together with other major assets, experiencing accelerated growth. The token receives major financial support because it represents the market’s leading position.

x
Source: X

Mid and low-cap altcoins will experience their price peaks in the fourth phase of altseason through widespread speculation, which produces market bubbles. As Ethereum gains dominance, it supports overall market expansion through sustained growth of large-cap tokens, which triggers renewed price escalation within smaller altcoins.

Trump’s World Liberty Increases Its Ethereum Holdings Amid Market Uncertainty

Recent strategy at Trump’s World Liberty has shown continued growth in Ethereum assets through the acquisition of 1,826 ETH, which amounts to $5 million in market value. World Liberty now possesses 61,114 Ethereum tokens that loosely correspond to a total worth of $205 million.

The long-term network potential of Ethereum price remains strong to World Liberty as it purchased the cryptocurrency at an average price of $3,354 despite its price declines in the unpredictable market.

The market uncertainty exposed World Liberty to a $31 million financial loss, which demonstrates the risks of Ethereum position management. World Liberty continues to demonstrate involvement in the Ethereum market by transferring 86,296 ETH worth $235 million apart from its previous buying activities.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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