Ethereum

Future

Bitcoin

Reserve

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum [ETH] has seen moderate gains, however, it must stay above $2,300 to avoid mass sell-offs.</li>
 <li>2.4 million addresses have purchased 52.6 million ETH tokens at $2,300, making it a crucial support level.</li>
</ul>
<p>Ethereum [ETH] has followed a different trajectory to Bitcoin in the past week, registering moderate gains on its monthly price charts.</p>
<p>Currently, Ethereum is trading at $2,404, marking a 1.06% increase on the weekly charts and also gaining on the daily charts.</p>
<h2 id="eth-s-key-support-level">ETH’s Key Support Level</h2>
<p>Despite these gains, Ethereum remains significantly below its recent high of $2,700 and 50.7% from its all-time high of $4,878. Crypto analyst Ali Martinez has highlighted that $2,300 is the key support level for Ethereum.</p>
<p>Martinez’s analysis points to the 2.4 million addresses that purchased 52.6 million ETH tokens at $2,300. He believes Ethereum must hold above this level to avoid a mass sell-off.</p>
<h2 id="potential-market-sell-off">Potential Market Sell-off</h2>
<p>If Ethereum fails to hold this demand zone, it could trigger a mass sell-off as investors try to minimize losses, leading to increased selling pressure and driving prices down.</p>
<p>Ethereum’s Exchange Supply ratio has recently increased from 0.143 to 0.1443, suggesting that holders may be preparing to sell or take profits. This is typically a bearish signal as investors move their ETH from private wallets to exchanges.</p>
<p>Furthermore, Ethereum’s Exchange Reserve has been increasing throughout the week, reaching $18.7 million at press time. This supports the observation that investors are transferring their ETH to exchanges, potentially leading to selling pressure and pushing prices down.</p>
<p>Ethereum’s MVRV long/short difference has remained negative over the past month. This indicates that long-term holders are seeing losses while short-term holders are profitable, potentially leading to long-term holder capitulation and greater selling pressure.</p>
<p>According to an analysis, Ethereum has been trading within a multi-month descending channel. Accompanied by negative market sentiment, Ethereum could decline before a breakout from this trend. If it sees a pullback, Ethereum will find the net support at $2,325.</p>

Alert for Ethereum Traders: Key Level to Watch to Prevent Future Sell-off

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CoinEagle.com

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