Ethereum (ETH) investors faced a challenging week as the leading altcoin's price took a significant hit. Despite speculation that ETH might have reached its market bottom, recent analysis suggests otherwise. Here's what's happening with Ethereum.
Ethereum Bears Take Charge
According to CoinMarketCap data, Ethereum bears exerted substantial pressure, causing the token’s price to drop over 4% last week. The situation worsened in the last 24 hours, with ETH experiencing a nearly 8% decline.
At the time of writing, ETH was trading at $2,481.07, with a market capitalization exceeding $298.4 billion. Following the price drop, about 77 million ETH addresses remained profitable, representing 63.9% of all ETH addresses.
63% of ETH Investors Remain in Profit
While the recent decline appeared concerning, a fresh analysis suggests that Ethereum might have further to fall. UNKNOWN TRADER, a well-known crypto analyst, recently tweeted about several “yellow” zones.
The analyst mentioned they would consider buying ETH once the price enters these yellow zones, specifically between $2,172 and $2,085.
Are Investors Selling ETH?
An analysis by Bitcompare of Santiment data showed that ETH's supply on exchanges is rising, indicating increased selling by investors. Additionally, a spike in Ethereum’s exchange inflow confirmed the heightened selling pressure.
Lookonchain recently highlighted an intriguing development on X. A whale with a strong track record sold 5,088 ETH, worth $13.58 million, at a $3.66 million loss. This sale has raised questions about whether ETH’s price might decline further.
Interestingly, Bitcompare's examination of Glassnode data revealed that ETH is already trading well below its potential market bottom. The Pi Cycle Top indicator places Ethereum’s market bottom at $3.2k, suggesting that a bullish reversal could still occur.
Further Price Decline Possible
Despite the Pi Cycle Top indicator indicating that ETH is below its market bottom, most technical indicators point to a continued decline. For example, the Chaikin Money Flow (CMF) has registered a downtick, and Ethereum’s Relative Strength Index (RSI) is also trending downward, indicating a potential further price drop towards $2,311.
As the market remains volatile, investors are keenly watching these indicators to determine whether it's time to buy the dip or prepare for more downward movement.
