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Ethereum, the world’s largest altcoin, was trading around ATH levels of roughly $4,300 less than a month ago. However, the cryptocurrency’s price performance since then has been dismal, to say the least, with ETH being dragged down the charts by Bitcoin’s own drop below $40,000.
Since the aforementioned devaluation occurred, recovery has been gradual, with the currency currently trading at slightly under $2,500. The cryptocurrency was trading in the $2,200 – $2,800 range, as it had done over the previous two weeks. Understandably, ETH’s rise to the top of the charts has prompted the inevitable question: What is happening to ETH right now?
Where does ETH go from here?
Let us concentrate on the first question for the sake of this post. With all of the current bullishness connected with the crypto market, that is a really legitimate question. Especially considering there have been rumblings of surrender. Are there any?
According to Santiment, the answer is positive. For example, Ethereum’s weighted social sentiment is at its lowest since late April. Prior to these two incidents, the last time the measure was this low was in October 2020. This data indicates that societal feeling has really yielded.
However, it also implies that the price can only go up from here, especially given that prior drops to these levels have usually been followed by spurts of price appreciation.
The exchange inflows measure had a similar result, with the same showing a massive rise on the charts over the last 48 hours to show that more and more individuals are shifting their ETH onto exchanges for sale. On the contrary, it is worth remembering that in the past, such increases have been followed by price increases. As a result, some good may result from such “capitulation.”
It’s also interesting looking into Token Age Consumed, a statistic that charts the movement of previously idle Ethers as a gauge of whether major market participants are truly exiting. The data-analytics platform claims that
“A string of age consumed spikes last day. Capitulation? Maybe.”
The same conclusion was confirmed by Santiment’s discovery that 13K WETH had been liquidated on Maker DAO.
There are other signs as well, which, although not revealing about whether ETH investors are capitulating or not, do suggest which way the currency may be moving. Despite the crypto’s price stabilising, address activity has yet to rebound to levels comparable to the highs experienced in mid-May. This is a major “bearish concern.”
Furthermore, according to the Ethereum price/NVT comparison charts,
“The amount of circulation for Ethereum has been slowing down considerably in June, and dropping more than half of its market cap in less than a month has caused hesitation from traders. Our NVT model is showing its first bearish bar since April 2020.”
However, it is important mentioning that there are certain pros to be found. Whale addresses, for example, remain stable, despite the fact that the accumulation trend appears to have halted somewhat recently. Finally, despite some hints of surrender, Ethereum costs have remained consistent, having lately decreased to levels last seen in January.
As a result, are there evidence of ETH holders caving in? Without a doubt. Does this imply that the cryptocurrency is doomed to fall much farther down the rankings? That is a subject fraught with uncertainty, especially because measures and indications continue to argue the contrary.