Ethereum Bows to Selling Pressure as Bears Maintain Dominance

Ethereum ETH vitalik buterin

Earlier this week, a substantial amount of Ethereum (ETH) totaling over $181 million was withdrawn from cryptocurrency exchanges. If the price of ETH manages to breach the $1627 resistance level, it may subsequently test the support level at $1569.

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According to data compiled by Santiment, the average fee for Ethereum (ETH) transactions this week has hovered around $1.13, marking its lowest point since November 2022. Historically, Ethereum’s price has shown a pattern of bottoming out and subsequently starting an upward trend when network fees have reached this level.

Surprisingly, despite the decline in fees, there hasn’t been a notable increase in transaction volume on the Ethereum network. Transaction volume has remained relatively stable, consistently hovering around the 1,000k mark for well over a year.

In a noteworthy development earlier this week, a substantial amount of ETH, valued at over $181 million and equivalent to around 110,000 ETH, was moved out of exchanges. This marked the largest daily outflow since August.

The total amount of Ethereum held off-exchange has now reached a record high of 115.88 million ETH, while the amount of ETH available on exchanges has fallen to its lowest level in nearly 5.5 years. This shift is an encouraging sign, as the reduced availability of ETH on exchanges implies reduced potential for sellers to cash out their holdings, which can contribute to a more bullish market sentiment.

Bears in Command

As of the current moment, Ethereum (ETH) is priced at $1641, reflecting a decrease of 0.32% within the last 24 hours, according to data sourced from CMC. Additionally, the trading volume has experienced an 11.47% decline. Unfortunately, the cryptocurrency has been unable to sustain the recent bullish trend, as market sentiment has shifted in favor of the bears.

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Source: CoinMarketCap

Should the price of Ethereum (ETH) breach the support level at $1627, it is probable that it will undergo testing at the $1569 level. A further downward movement may result in the price testing a key support level at $1539. Conversely, if the price successfully surpasses the resistance level at $1667, it may proceed to test the $1735 mark.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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