After showing a healthy bounce last week, Ethereum (ETH) is once again losing steam. As of press time, ETH is trading 9% down at a price of $1032 with a market cap of $125 billion.
The world’s second-largest is clearly showing signs of weakness and if it fails to hold $1,000 it can possibly move all the way to $700 and below.
Market analyst Ali Martinez shares some crucial on-chain data to watch for! citing data from Glassnode, Martinez said that there’s been a huge spike in the ETH exchange supply on the exchanges recently. He wrote:
מער ווי קסנומקס $ עטה. worth over $200 million, have been sent to known cryptocurrency exchange wallets over the past five days.
Furthermore, there’s a huge rise in the number of ETH addresses that have come under losses with the recent correction. This could trigger another sell-off. Ali Martinez דערקלערט:
עטהערעום is at risk of a steep correction. Transaction history shows that nearly 468,000 addresses with more than 7 million # עטה are now underwater and could soon start exiting their positions. A spike in selling pressure could trigger a downswing to $700 or even $600.
Ethereum Whales Continue to Buy
Despite the recent mayhem in the ETH price, whales have continued to show strength with periodic accumulations. On-chain data provider Santiment אנגעוויזן:
עטהערעום שאַרק און וואַלפיש אַדרעסז (האלטן צווישן 100 צו 100 ק $ עטה) האָבן קאַלעקטיוולי צוגעגעבן 1.1% מער פון די מאַטבייע ס צושטעלן צו זייער באַגס אויף דעם -39% טונקען. היסטאָריש זאָגן ווייזט צו דעם ריי גרופּע מיט אַלף אויף צוקונפֿט פּרייַז באַוועגונג.
The broader market conditions look beak as of now and global macro factors are playing a key role in it. As per recent data, the U.S. consumer confidence in the market has dropped considerably and this could put more selling pressure on U.S. equity.
With the crypto market already facing a steeper correction, the Ripple effects can continue further.
די דערלאנגט אינהאַלט קען אַרייַננעמען די פערזענלעכע מיינונג פון די מחבר און איז אונטערטעניק צו די מאַרק צושטאַנד. טאָן דיין מאַרק פאָרשונג איידער ינוועסטינג אין קריפּטאָקוררענסי. דער מחבר אָדער די ויסגאַבע איז ניט פאַראַנטוואָרטלעך פֿאַר דיין פערזענלעכע פינאַנציעל אָנווער.
Source: https://coingape.com/ethereum-exchange-supply-spikes-eth-at-a-risk-of-correcting-to-700-and-below/