Ethereum (ETH) has once again reclaimed the $2,600 mark, indicating that a price surge might be imminent. However, recent activity suggests that this upward trend may face significant challenges.
CoinMarketCap's data reveals that despite ETH's recent price stabilization near $2,600—trading at $2,602.78 with a market capitalization exceeding $313 million—the weekly and daily charts remain in the red. Ethereum’s rainbow chart also places the cryptocurrency in the “still cheap” zone, potentially signaling a good accumulation opportunity before a bullish trend kicks in.
Yet, a recent development reported by Whale Alert on X may cast doubt on this outlook. According to the report, 12,461 ETH, valued at over $32 million, were transferred from an unknown wallet to Coinbase, indicating a possible sell-off.
Utilizing Santiment’s data, confirms that Ethereum's supply on exchanges increased last week while supply outside exchanges slightly declined. This trend suggests rising selling pressure, a sentiment further supported by spikes in exchange outflows on August 12 and 14.
Interestingly, while general investors appear to be offloading their ETH holdings, large investors, or "whales," have increased their ETH holdings, indicating continued confidence in the cryptocurrency’s long-term prospects.
Looking ahead, derivatives data from Coinglass shows an uptick in Ethereum's long/short ratio, suggesting growing bullish sentiment. Despite a drop in ETH’s funding rate, which often precedes a trend reversal, the future trajectory of Ethereum remains uncertain.
Hyblock Capital’s analysis presents two potential scenarios: if a bullish reversal occurs, ETH could aim for $2.9k, but if the bearish trend persists, the price might dip to $2.4k.
As the market watches closely, Ethereum's next move will be crucial in determining whether it can overcome the current selling pressure or if further declines are on the horizon.
