Ethereum weak dynamics in recent weeks is concerned with investors. Despite the signs of the recovery of the crypto, ETH remains sluggish.
We figure out what is happening on the Ethereum (ETH) market and what to expect from the price of cryptocurrency.
Support for Ethereum Kits does not attract retail demand
The analysis of the daily schedule ETH/USD shows that since May ninth, ETH has been moving in the sidewall between a resistance of $ 2,750 and a support of $ 2,185.
The recent Cryptoquant report indicates that stagnation is caused by the confrontation between the active accumulation of whales and a decrease in retail interest. Whales are moving weekly about 60,000 ETH to steiling contractions, demonstrating long-term confidence in the network and its coin. According to Cryptoquant, the total cost of the covered ETH reached 36 million coins, increasing by 3% in June.
Large conclusions from exchanges, some of which exceed 200,000 ETH, emphasize investors’ attempts to absorb the pressure of sales and reduce the affordable offer.
The increase in the total cost of the covered ETH shows the confidence of large holders in the future coins. This, along with a decrease in the influx of exchanges, can reduce market liquidity and maintain price stability.
However, for ETH everything went a different path. Retail demand remains weak, despite the activity of whales. According to Cryptoquant, the number of active addresses on the ETH network stabilized between 300 thousand and 400 thousand. This is much lower than the levels characteristic of bull breakthroughs.
While large players continue to buy ETH, a decrease in retail demand holds the price within the range.
ETH Forecast: A breakthrough above $ 2,750 is possible
At the time of publication, ETH is traded at $ 2,602. Demand growth can help altcoin overcome the key resistance level of $ 2,750, which can lead to a rally up to $ 3,067.
However, if the bear pressure intensifies, the price of ETH may drop – probably up to $ 2,424.
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Source: Cryptocurrency
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