Multiple ETH signals indicate the possibility of a mitigating rebound. On the contrary, it has been striving to maintain a bullish momentum, which may bring the risk of surrender
Multiple ETH signals indicate the possibility of a mitigating rebound. On the contrary, it has been striving to maintain a bullish momentum, which may bring the risk of surrender.
- Santiment observed the sensitivity of ETH holders to the possibility of greater selling pressure.
- Data on the ETH chain shows that top-level addresses are protecting ETH under pressure from whale selling.
Compared to the bullish attempt in the last week of September, Ethereum [ETH] started a significant pullback this week. However, recent observations may provide us with a deeper understanding of the current demand dynamics and the development direction of ETH.
Like most other cryptocurrencies, ETH has been experiencing a slow market phase. Now people are worried that bears will regain their dominant position and lead to surrender.
The recent Santiment analysis highlights the impact of these concerns as ETH holders have recently experienced some panic selling. Analysis shows that despite the surge in selling pressure, the market is still in a short-term profit taking mood.
Some other cryptocurrencies also have the same experience, including SUSHI and ShibaInu. The panic among ETH holders in the middle of the week has widened the decline of cryptocurrencies from their current weekly high to 8%. On Thursday, October 5th, during trading hours, ETH fell to $1607.
The Santiment analysis also indicates that a decline represents an opportunity for short-term recovery. As of the time of publication, the ETH trading price was $1648, up 2.29% in the past 24 hours. This reflects Santiment's statement that a decline will represent an opportunity for short-term gains.
Based on the price chart above, we can see thatThe price trend of ETHLimited to support level of $1544 andResistance of $1745Between bits. The recent shift, coupled with a surge in liquidity shown by the Money Flow Index (MFI). But what information does the on chain indicators reveal about the current situation?
Is there a risk of ETH surrendering?
The decrease in ETH confidence may be a major reason. The cryptocurrency has significantly discounted from its high point in mid July to its latest low point before mid September.
Multiple signals indicate the possibility of a mitigating rebound. On the contrary, it has been striving to maintain a bullish momentum, which may bring the risk of surrender.
According to the above figure, as of the time of publication, ETH addresses holding at least 1000 and 10000 ETHs were at a low level for three months. Despite these findings, popular ETH addresses have been increasing over the past four weeks. This indicates that the largest whale is still purchasing, protecting cryptocurrencies from further downside impacts.
When the top-level address is still being purchasedThere is little possibility of surrender. This makes it a very important indicator to closely monitor. At the same time, focusing on an address that holds at least 1000ETH can ultimately allow bulls to experience less friction. Such a result may keep ETH at its current low range, which is conducive to further recovery.
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