 ▲ Ethereum (ETH) |
Last night, Ethereum (ETH) fell below $3,500 due to the influence of market conditions.
Cointelegraph, a cryptocurrency media outlet, reported that Ethereum trading prices also fell along with the decrease in the supply of Ethereum from whale forces.
Santiment's analysis of on-chain data shows that the Ethereum token supply for wallets holding between 1 and 10 million ETH has decreased by 1% over the past week. The supply of wallets holding 100,000 to 1 million ETH also appeared to be decreasing. This suggests a flow of assets moving to individual investors with small token holdings by distributing Ethereum tokens held by Ethereum investors.
The media also paid attention to the fact that price adjustment began after Ethereum's relative strength index (RSI) exceeded 70, the entry point into the overbought area. On the 11th, Ethereum moved to an area close to the support line that joins the 50-day exponential moving average (EMA) and the 0.5 Fibonacci retracement line, both formed near $3,475.
The media predicted that if it falls below the 50-day EMA and Fibonacci 0.5 retracement line, Ethereum's June trading price will fall below $3,400. However, he added that if the rebound is successful, it could recover to $3,600 to $3,800, which many traders are paying attention to as the next target range.
However, FX Street, a media outlet specializing in virtual assets, raised the possibility that the Ethereum price could recover.
First, we paid attention to Bitwise's findings that the Ethereum ecosystem recorded higher profits than Robinhood and Reddit as of the first quarter of this year. Regarding this, he said, “Ethereum applications are a test bed for resilience, creativity, and the outlook for the global cryptocurrency industry.”
Additionally, the media reported on the 6th (local time) that Ethereum's open interest (OI), which recorded $16.37 billion, decreased by nearly $600 million earlier this week. Referring to this, “Considering that the price of Ethereum is falling faster than OI, investors can be considered confident of a bullish reversal. In other words, it suggests the possibility that Ethereum’s weakness will end as a temporary trend,” he explained.
