Ethereum
Ethereum Price Rejection of $3,360 – Blame it on Profit Taking or…
- Ethereum has seen two significant waves of profit-taking over the past month, raising doubts about an upcoming rally.
- ETH whales have been adding to their supply as retailers are eager to sell.
Ethereum [ETH] saw a rejection of the $3,360 resistance level over the weekend. This describes short-term bearish sentiment.
Besides, Dencun’s latest upgrade was a success, helping L2 solutions achieve low gas fees.
THE next target for developers, it’s called Prague. Even as hopeful news broke, on-chain metrics showed a lack of confidence from market participants.
Indices of Ethereum Supply Distribution
Source: Feeling
AMBCrypto’s analysis of the supply distribution showed that almost all wallets containing between 1 and 100,000 ETH have sold out in recent months.
It was micro-wallets with less than 0.1 Ethereum that were buying, hoping for a rally after Bitcoin [BTC] reduce by half.
In the past, when the cohort of 100,000 to 1 million token holders were added to their reserve, it happened during a market rally. Sometimes this preceded a major retracement, as was the case in mid-January.
The second half of April saw this cohort calm down, without increasing or selling their supply.
The cohort of 1 to 10 million inhabitants experienced a sharp increase in early March. Since then, they too have remained silent. Together, this shows that major participants expected bullish sentiment in the coming months.
A sharp rise in supply from 100,000 to 1 million holders could be useful for traders to mark local tops and impending retracements.
Does fear still reign in the market?
Source: Feeling
Network realized profit/loss (NRPL) increases during periods of rapid price appreciation as profits accumulate. The first two weeks of March saw sharp price increases alongside spikes in NRPL.
This indicated profit-taking activity.
However, the NRPL has since then seen a downward trend. It had occasional spikes, like late March and mid-April, each smaller than the last.
This shows that participants were eager to take profits even though the price was just above the $3,000 support zone.
This indicates a lack of confidence, which is part of the prolonged retracement that Ethereum has witnessed over the past two months.
Source: Feeling
On the other hand, the average dollar invested age (MDIA) has increased sharply over the past month. This metric shows that the asset is again in an accumulation phase.
It fell sharply during the rally, indicating that holders were taking profits en masse.
Read Ethereum [ETH] Price prediction 2024-25
Over the past month, HOLDer sentiment has been stronger than the collective desire to make a profit.
In conclusion, indicators showed that fear and hope were present in the market, but long-term investors had more reason to hold on than to sell.