In February, Ethereum mainly remained in a narrow price corridor, without demonstrating significant changes. However, this week the general drop in the market caused by Donald Trump’s trading policy led to a decrease in ETH to many months of minimums
Against the background of strengthening bear moods and difficulties in restoring ETH, Ethereum investors are wondering: whether March will bring further fall or a possible rebound of the price.
ETH offer is growing, sales pressure is enhanced
The constant increase in the volume of the circulating supply Ethereum is concerned with market participants. According to Ultra Sound Money, over the past 30 days, 66 350 ETH has received the circulation. This is more than $ 138 million at current market prices.
When more tokens enters the circulation, the general offer of the asset increases. If demand does not have time to increase the supply, this can put pressure on the price of the coin, as more tokens are available for sale.
The lack of significant purchasing interest, capable of absorbing an excess offer, suggests that ETH can remain weak in March.
In addition, an increase in the amount of Ethereum on exchanges causes additional fears. After the fall to the annual minimum of 17.27 million ETH on February 21, the indicator increased sharply. Over the past seven days, it has grown by 2%. At the time of writing the article on exchange wallets is 17.67 million ETH.
Eth balance on exchanges shows how many coins are on exchange accounts. When this indicator grows sharply, this often signals that the owners plan to sell their assets.
An increase in liquidity on the part of the offer for sale enhances pressure on the price. If such a trend continues, this can strengthen bear mood.
Is it worth buying Ethereum now
However, some experts believe that the current situation may be a good opportunity to buy. Santiment analyst Brian Kuinlivan noted that the current prices of ETH can be an attractive entry point for long -term investors.
He emphasized that both short -term and long -term ETH holders are now in great loss. This is rare among the top 50 cryptocurrencies. Historically, such periods of surrender preceded a significant increase in prices, since large investors usually begin to accumulate assets after mass sales.
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Source: Cryptocurrency
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