Pearl
Bitway
Walrus
Optimism
Pons
Quantus
NEAR Protocol
- The Ethereum price stalls near the $3400 mark and faces significant selling pressure.
- Large holder’s activity saw a decline of over 178% in a week, indicating waning confidence.
The Ethereum (ETH) price has been hovering around the $3400 level and faces a barrier around the 50-day EMA mark. Amidst the bullish sentiment across the market, the bull army could not gain thrust and rally past $3600.
ETH large holders’ netflow has decreased by a staggering 178% in the last seven days, indicating that the pressure could be on the asset price.
As more than 0.1% of the total circulating supply exits their position, they significantly impact price. The decline in this metric shows signs of distribution and could lead to a price decline.
As large players were selling their coins, the Ethereum price might experience a follow-on retracement. Moreover, it could retest the 100-day EMA mark if the action continues.
When writing, The ETH price traded at $3410, noting a rise of over 1.02%. Its market cap stood at $410.15 Billion, and the total supply was at 120.46 Million.
Ethereum Price Could Reach $5k: Analyst Weighs in
A recent tweet by CryptoELITES highlighted that the Ethereum price has been taking support from the rising trendline. The coin has recently registered a breakout and decisively retested the region.
Once it regains traction, it could see a massive blast and may reach the $5000 level in the short term. In case of a successful close above the $5k mark, the next targets to $7500 and $15k will unlock.
However, Ethereum’s on-chain metrics reveal a decline in the network activity. Over the past week, new addresses have declined by 2.77%, and active addresses have dropped by 3.98%.
This decline suggests waning investor confidence and signals a declining growth in the network as users lose their interest.
What’s Next for Ethereum (ETH)?
Ethereum’s immediate trajectory depends on its ability to regain lost buying momentum. The ongoing consolidation near the $3400 mark placed ETH in a make-or-break situation.
Moreover, a significant decline in On-Balance volume raises concerns about weakening support. A tweet from IncomeSharks said that, with a low OBV, the ETH price might continue the ongoing consolidation in the next few sessions.
If ETH continues to hold gains above the $3400 mark, it could signal confidence in a rebound, but the lack of volume spurt remains a concern. Additionally, the coin’s social engagement needs to spike to rekindle speculative interest.
Without a strong cross above the $3600 mark, the Ethereum price risks prolonged consolidation or a further drop below $3400. The next few sessions will likely test whether Ethereum can bounce back or lose the momentum.
What Does the Derivatives Market Data Say?
Ethereum’s Open Interest (OI) has dropped by 0.29% to $23.26 billion, indicating traders are closing their positions. The reduced market participation and shift in sentiment could reduce the Ethereum price volatility, and it could continue to flow in the consolidation zone.
However, the OI-weighted funding rate remained positive at 0.0077%, which reflects sustained demand for long contracts.
The immediate support zones for the ETH price were $3320 and $3200, whereas the resistance zones were $3500 and $3780.
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.
