Ethereum rally halts as selling pressure intensifies from 3-week highs
Ethereum rally halts as selling pressure intensifies from 3-week highs
Ethereum price witnessed a surge of over 15% in the past five days, breaching the $2,600 resistance level. On Monday precisely, Ethereum experienced its largest single-day gain since August 23, rising more than 8%. This sharp price increase shifted market sentiment from neutral to greed, as traders flock to capitalise on the bullish momentum.
The rally also spurred activity from long-term Ethereum holders. According to data from Santiment, the 'age consumed' metric, which tracks the movement of long-held coins, surged by over 400% on Monday, reaching 66.40 million ETH—the highest level since October 4. A spike in the ‘age consumed’ metric often signals long-term holders moving coins for trading or liquidation.
Much of this activity appears to be coins moving to other exchanges as BeinCrypto’s analysis revealed that on Monday alone, 51,880 ETH, worth over $130 million, were transferred to various cryptocurrency platforms.
Selling Pressure Pushes Ethereum Below $2,600
The sharp increase in exchange netflows suggests selling pressure is building, with more investors opting to offload their holdings rather than accumulate. This influx of ETH onto exchanges is now weighing on the altcoin's price, which dropped over 4% on Tuesday, retreating below $2,600.
Ethereum price forecast from Traders Union
As the selling pressure builds, Ethereum could slip further, potentially testing the $2,400 support level—a 10% decline from its recent 3-week high of $2,685.
Technically, Ethereum remains confined within a symmetrical triangle pattern, with the potential for a breakout. A bearish move below $2,400 could trigger further declines, while a bullish breakout above $2,700 would signal renewed upside momentum in the coming days.
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