Ethereum prices have been in the range of $1800 to $1900 over the past week.The decrease in whale activity and the flat foreign exchange balance indicate a contemplative mood among ETH traders
- Ethereum prices have been in the range of $1800 to $1900 over the past week.
- The decrease in whale activity and the flat foreign exchange balance indicate a contemplative mood among ETH traders.
- ETH may struggle to break through the resistance level of $2000.
Ethereum prices (ETH) have been unable to achieve further gains for weeks, and on chain data shows that Ethereum Whales remain skeptical. Similarly, the decrease in coin supply on the exchange indicates that investors may wish to book short-term profits.
Using on chain indicators to explain Ethereum price stagnation
According to Santiment data, as the countdown to the Shanghai/Capella upgrade continues, the volume of Ether transactions worth $100000 or more has significantly decreased.
From the above chart, it can be seen that the number of ETH whale transactions has steadily decreased over the past month, from 14655 transactions on March 11 to a negligible 2346 transactions as of April 10.
Whale activity is usually the main indicator of market sentiment, and the decrease in trading volume indicates that there is insufficient confidence in the short-term price prospect of tokens. Therefore, the interest of retail investors may also decrease.
The flattening of the supply of Ethereum currency during trading also indicates a poor short-term outlook for Ethereum. In this regard, as ETH witnessed price increases in late March, investors began to move tokens out of the exchange.
As shown in the figure, since early April, the outflow of funds from Ethereum has stabilized. However, during the period from March 31 to April 10, the supply of ETHs on the exchange remained relatively fixed at 12.49 million.
The trend presented in the chart indicates that Ethereum investors hold ETHs on the exchange, hoping to profit from short-term trading opportunities, rather than storing them in cold wallets. It is worth noting that cold wallets, also known as offline wallets, can position future profits.
Therefore, this allows for the large supply required to complete purchase orders without causing significant upward pressure.
Simply put, the decline in whale trading volume and the stable supply of exchange currency are major obstacles to the surge in Ethereum prices.
According to IntoTheBlock data, Ethereum prices are facing major resistance levels
At the time of writing, Ethereum rose nearly 2% in the past 24 hours and was auctioned at $1889. During the same period, the trading volume of counterfeit coins increased by nearly 30% to $7.76 billion. However, prices have been unable to pave a way forward.
ETH/USDT12 hour chart
Data from IntoTheBlock's Global Fund Import and Export Price (GIOMAP) suggests that if bulls show reluctance and Ethereum prices fall below the support level of $1835, bears may quickly control the situation.
However, purchasing up to 4.09 million ETHs for 2.06 million addresses within the price range of $1805 to $1896 will provide support. If this support level is not maintained, the PoS token may further fall to the support level of $1753.
On the contrary, if wait-and-see investors join, Ethereum prices may rise and break through the $2000 threshold.
However, a queue of approximately 1.7 million addresses that purchased nearly 1.84 million ETH tokens for slightly less than $2000 may be sold after breakeven. In a highly bullish situation, Ethereum prices may rise to the psychological resistance level of $2500.
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