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Ethereum price shows multiple signs that this uptrend has lost its steam. There is clear power struggle between the bulls and bears, which has led to a tight consolidation. But odds seem to be favoring the sellers.
Ethereum price chart looks simple and indicates that a rejection at the monthly hurdle of $1,677 will lead to a correction to the $1,329 support level. But a flip of the said level could trigger a rally for ETH.
While the price chart remains the same, certain sell signals are developing, as seen in the on-chain metrics. IntoTheBlock’s Global In/Out of the Money (GIOM) reveals a massive cluster of investors at $1,928. Here roughly 7.7 million addresses that purchased 25.5 million ETH are “Out of the Money.”
These investors bought their ETH between $1,666 and $2,351 and are likely to sell their holdings as ETH enters their buy zone. This move would add weight to the selling pressure triggering a liquidation of the longs.
Hence, a move into the $2,000 psychological level seems highly unlikely, at least until Bitcoin price recovers.
ETH GIOM
Further adding credence to this outlook is the large transactions worth $100,000 or more on the ETH network. This metric is used as a proxy to the number of whales or institutional investors interacting with the Ethereum network.
Typically, a sharp increase in large transactions after a rally indicates these whales could be moving their holdings to book profits. Hence, upticks in this metric can be used to predict local top formations.
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As for Ethereum, the large transactions have spiked from 2,020 to 4,070, denoting a roughly 100% surge in whales’ interaction with the Ethereum network and potential for local top formation.
ETH large transactions
Adding these two outlooks to the fact that Bitcoin price is also forming a potential top will provide a more succinct picture of the market conditions. Therefore, investors need to be cautious.
On the other hand, a flip of the $1,677 monthly hurdle into a support floor will confirm that the bulls are back. In such a case, Ethereum price could attempt to retest the immediate hurdles at $1,779, $1,820 and the $2,000 psychological level.
