Ethereum’s most significant holders, often referred to as whales, persist in unwaveringly holding their positions and consistently increasing them during market dips. Despite their steadfast approach, caution is advised for investors when the price falls below the $1,550 mark.
The world’s largest cryptocurrency, Ethereum, is currently experiencing significant selling pressure, encountering robust resistance at the $1,750 price level. As of the latest data available, ETH is trading at a price of $1,560, reflecting a 1.73% decline, and its market capitalization stands at $187 billion.
Ethereum Whales’ Resilience Amid Selling Pressure
Despite the prevailing selling pressure, Ethereum’s largest holders, commonly known as whales, have displayed remarkable strength. Recent on-chain data reveals that the top 10 whale addresses have amassed an astonishing 40 million ETH.
According to reports from on-chain data provider Santiment, the wealthiest Ethereum addresses, whether on exchanges or off them, continue to accumulate substantial wealth, even as Ethereum’s market value hovers slightly above $1,570. Currently, approximately 8.51% of all Ethereum (ETH) is held on exchange platforms. Meanwhile, the top 10 non-exchange addresses collectively possess an impressive 39.22 million ETH.
Ethereum’s Market Share Decline Amid Bitcoin’s Surge
Despite the ongoing selling pressure, Ethereum has been ceding ground to Bitcoin. The portion of the total market capitalization held by Ether within the $1 trillion cryptocurrency market has dwindled from around 18.4% at the start of the year to 17.8%. Simultaneously, Bitcoin’s market share has surged past the 50% mark.
On Monday, the Ethereum Foundation executed a sale in which it converted roughly $2.7 million worth of Ether into the stablecoin USDC. This additional selling activity has intensified the downward pressure on the world’s second-largest cryptocurrency. Crypto analyst Ali Martinez has pointed out the potential for a significant sell-off if Ethereum’s price dips below $1,530.
— Ali (@ali_charts) October 10, 2023
Analysis of Ethereum (ETH) Price
At the latest update, Ethereum’s price is hovering slightly above the critical support threshold of $1,550. However, concerning technical indicators, both the Relative Strength Index (RSI) and the Awesome Oscillator (AO) have crossed below their respective equilibrium levels of 50 and 0. These shifts suggest a pronounced rise in bearish momentum.
In light of these developments, investors should be prepared for the possibility of Ethereum’s price revisiting the next support level at $1,309 in the near term.
Despite the prevailing bearish signals, the influence of external factors such as news or macro events could swiftly alter the market dynamics. In such a scenario, if Ethereum’s price successfully converts the $1,727 resistance level into a solid support, it would invalidate the bearish perspective. This development could potentially drive Ethereum to retest the $2,030 resistance.
The preceding week carried significant weight for Ethereum investors, coinciding with the introduction of six futures-based ETFs in the United States. However, the response from investors appeared lukewarm, with these new ETFs amassing just under $10 million in their inaugural week.
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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