Ethereum
Ethereum: What future for ETH as investors continue to leave?
- The price of Ethereum fell by almost 10% in a week.
- Technical analysis suggests a possible near-term recovery, with key indicators pointing to less investor interest.
Ethereum [ETH] The price has seen a significant decline, dropping almost 10% in the last week and 1% in the last day, taking it to its 24-hour low of $2,868.
This decline is more pronounced than that Bitcoin [BTC]which has managed to cross notable price levels despite current market conditions.
The slowdown in Ethereum’s market performance is attributed to several factors, including massive whale activities which have introduced significant volatility and selling pressure into the market.
Indicators of Declining Investor Interest in Ethereum
Ethereum’s market problems are further compounded by declining network activity indicators.
According to AMBCrypto’s take on Glass node According to the data, active Ethereum addresses fell from a high of 564,868 in late April to 468,548 at press time.
Source: Glassnode
This drop in active addresses is accompanied by a drop in the number of new addresses, from 196,629 at the start of the month to less than 85,000 on May 11.
These metrics highlight declining investor interest in Ethereum over this period.
Source: Glassnode
From a technical analysis perspective, Ethereum has broken important support structures on the daily chart, indicating bearish pressure.
The 4-hour chart revealed that at press time there was liquidity near the $3,200 region that needed to be drawn down before any major continuation of the decline.
This suggests that Ethereum could see a short-term rise above the $3,000 mark before potentially falling to around $2,800, setting the stage for a potential rally thereafter.
Source: TradingView
Read Ethereum [ETH] Price prediction 2024-25
Notably, Ethereum’s deposit into the exchange coincides with the reactivation of two Bitcoin wallets that have been dormant for almost 11 years.
Each of these wallets, holding 500 BTC, liquidated all of their assetswhich is further bad news for investors.