Ethereum (ETH) Whales Dump Tokens as TD Sequential Indicator Flashes Sell Signal

The cryptocurrency market has faced turbulence recently, and Ethereum (ETH), the second-largest cryptocurrency, is no exception. Despite its prominent status, Ethereum has encountered considerable challenges, with its price struggling to exhibit any sustained recovery.

Cryptocurrency markets have been experiencing turbulence, and Ethereum (ETH), the second-largest cryptocurrency, is no exception. Despite its prominent status, Ethereum has faced challenges, with its price struggling to show any sustained recovery.

According to crypto analyst Ali Martinez, some of the largest Ethereum whales, those holding more than 10,000 ETH, have been steadily offloading their tokens over the past month. This trend shows no signs of slowing and has significantly contributed to Ethereum’s 26% price drop in the past 30 days. Due to this decline, Ethereum’s year-to-date gains have narrowed to just 55%, making it one of the weaker-performing tokens within this timeframe.

The relentless selling pressure from these prominent Ethereum holders has also hindered the token’s ability to break out of its consolidation phase, which has persisted at the low end of its range over the last seven months. The bearish sentiment is further amplified by the TD Sequential indicator, which has flashed a sell signal on Ethereum’s hourly chart, potentially accelerating the current downward trend.

Looking to the future, Martinez has identified crucial support levels that could become significant if Ethereum’s price continues to decline. One key support zone lies between $2,300 and $2,380. In this range, approximately 1.62 million addresses have purchased over 50 million ETH. Holding this support level could be vital for bulls to avert another sharp price drop, akin to the one seen earlier this month, which drove the price down to $2,100—a level not reached since February.

Despite these bearish indicators, market researcher Leon Waidmann highlights a significant development that might herald a bullish shift for Ethereum. In a recent social media post, Waidmann points out that, for the first time, the ETH balance on cryptocurrency exchanges has fallen below 10%. This milestone is noteworthy as the amount of Ethereum held on exchanges is now lower than that of Bitcoin (BTC). Waidmann suggests that this trend indicates that Ethereum investors are increasingly withdrawing their tokens from trading platforms. This shift points towards a move away from short-term speculation and towards long-term holding.

As the market grapples with these conflicting signals, the next move for Ethereum’s price remains uncertain. Whether bulls or bears gain the upper hand will likely dictate the token’s short-term trajectory and could break the current phase of consolidation. At the time of writing, Ethereum is trading at $2,580.

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