ETH's upward parabolic trend in early February finally allowed the price to climb to a high of $ 290 before losing momentum amid the recent turbulence of Bitcoin and the market as a whole, potentially pushing prices towards the region. lower than 200 dollars.
Although ETH erased almost all of the profits made during the previous month, it seems that the whale has not yet given up, as data shows that the top 100 ETH holders are once again starting to accumulate.
This signals that ETH holders are increasingly trusting cryptocurrencies to rise further.
ETH whales begin to accumulate after a recent sell-off
ETH plummeting from the yearly high has caused significant damage to the market structure. The inability of the bull to sustain the momentum seems to clearly indicate some potential weakness.
Even so, cryptocurrencies still have extremely strong underlying indices and have been able to exist in the $ 200 area during the recent chaotic market.
Currently, ETH is trading slightly lower at $ 226, still surging from a 2020 low of $ 125.
For now, it seems that ETH holders are increasingly believing the price will bounce back from recent lows, as data provided by analyst firm Santiment shows a continuous pattern of accumulation among the top 100 holders.
The top 100 holders of #ETH are once again beginning to accumulate higher percentages of the total token supply, in spite of the ongoing consolidation that has been happened for the past couple of weeks. Generally, when this kind of accumulation starts to mount, that's a pic.twitter.com/Rr5C8vuE97
– Santiment (@santimentfeed) March 4, 2020
“The top 100 ETH holders are once again starting to accumulate higher percentages in the total token supply, despite the price consolidation over the past few weeks.”
What does it mean for ETH?
According to Santiment, although this cumulative move rarely leads to an immediate uptrend, it often refers to a positive situation for the bulls.
"Usually, when this kind of accumulation begins, it signals the people stake ETH many begin to have a collective sentiment that the token is undervalued. "
In addition, this trend also reflects the fact that buyers gradually view cryptocurrencies as a medium to long term game and eventually the price will increase significantly.
“Sometimes these bulls take a while to accumulate, but overall they are a good sign for ETH bulls.”
Although it is likely that ETH will decline further before it starts heading up, the latest developments are a sign that the medium-term prospect is still very bright.
ETH began to decline as the cryptocurrency market merged
The strong rejection of BTC yesterday caused ETH to be sold off similarly and plummeted until some support was found around the current price area.
In the short term, analysts believe that ETH is about to be capped at between $ 210 and $ 240, which is currently only marginally above the equilibrium of this range.
Trader George recently cited charts showing key levels within range on Twitter.
What I see … pic.twitter.com/haa40KxkLs
– George (@ George1Trader) March 4, 2020
The first break of ETH will tell us the market trend in the coming days or weeks and it is very likely that Bitcoin price action plays an important role in setting this next trend.
ETH is running under a bearish scenario, which can trade for less than $ 200
Previously, the Escobar trader had noted that ETH could plummet below $ 200 before finding any support.
Now it seems that this scenario is happening, leading him to conclude that prices continue to fall in the short term.
Red Pill timeline was off, but happenin rn. pic.twitter.com/8EGsQs8I9d
– ESCO₿AR 📈 (@TraderEscobar) March 4, 2020
If the ETH breaks down the lower boundary of the trading range at $ 210, then it is very likely that it will fall into the $ 100 zone before finding any noticeable support.
You can see the price of ETH here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Minh Anh
Bitcoin Magazine
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