Ethereum (ETH), the prominent smart contract platform, has recently rebounded from a weekly low, trading at $3,642, fueling anticipation for a potential all-time high. Despite this upward trend, the pattern of ETH holders selling their holdings for profit poses a significant risk to the continuation of the price surge. These sales are evidenced by substantial transfers of ETH to exchange wallets, indicating a readiness to cash out.
Alert on Potential Sell-Offs
In the past ten days, market data has shown a considerable outflow of approximately 374,130 ETH from personal wallets to exchanges, translating to over $1.36 billion. This trend has persisted in the last 24 hours, with a sell-off of 52,030 ETH worth $190 million. The movement of tokens to exchanges often precedes a dip in price due to increased selling pressure.
Support and Resistance Levels to Watch
Ethereum’s price recovery positions it above both the 50 and 100-day exponential moving averages (EMAs), lending a positive outlook to the currency. Nevertheless, should profit-taking persist, the cryptocurrency may find its next support at the 100-day EMA, approximately $3,336. A further decline could see ETH testing support at the $3,031 level, aligning with the 23.6% Fibonacci retracement point.
Alternatively, if Ethereum can maintain momentum and convert the critical 61.8% Fibonacci level into support, optimism may be restored, potentially dismissing the bearish scenario. A successful breach of the $3,830 mark, which corresponds to this level, could signal a further climb in Ethereum’s value, potentially leading to a new peak.