The bear market is back in full force. After many coins were bullish ahead of the Fed meeting last week, there was a selloff afterwards. Uncertainty over the future of crypto exchange Binance is currently giving the digital currency market a bearish sentiment. Ethereum was particularly hard hit in an overall weak market, which corrected around 5.5% in the past 24 hours. Because the Ether price fell by more than 7% in the last day and fell back below $1200. As the selloff gathers momentum and increasingly bearish trends take over, crypto whales continue to accumulate diligently.
Ethereum drops below $1200: bears take the helm for now
With a trading volume of around $10 billion, Ethereum has fallen below $1200 in the past 24 hours. ETH traded between $1161 and $1255 during this time frame. Currently, attempts are being made to consolidate at a rather low price level. On a weekly basis, ETH is down around 7% and Ethereum has also seen a milder trend over the past month. Overall, the ATH discount is again above 75%. The bear market does not stop, the latest bounce seems to have been another bear market rally.
The 4-hour chart currently illustrates the momentum the bears may have triggered. Recently, the downward pressure has been huge and Ethereum broke out of the bullish channel on the downside.
On a daily basis, Ethereum failed to hold the 50 SMA. The test failed, Ethereum pulled back significantly, so investors should now head south. A drop to $1070 seems theoretically possible.
On-Chain Data on the Ethereum Network: Crypto Walls Are Diligently Accumulating ETH – ATH!
On-chain data, on the other hand, might paint a different picture and at least give hope that it won’t go too far anymore. Because crypto whales identify the current price level as an attractive entry opportunity and diligently accumulate ether. Now, on-chain data shows a new all-time high for addresses holding at least 10 coins – ergo owning Ethereum for at least $12,000. There are now 348,738 addresses in total.
What’s next for Ethereum?
In the short term, Ethereum remains strongly bearish. The momentum is weak, the sales volume has been high recently. Apart from continued Binance rumors, macroeconomic sentiment will also decide Ethereum price predictions in the near term.
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