The struggle within Ethereum: Large-scale sellers versus big-time buyers - Who will ultimately prevail?
In the dynamic world of cryptocurrency, Ethereum [ETH] is currently experiencing a strong bullish phase. The digital currency has recently broken above $4,900 to new all-time highs, entering price discovery territory[4]. This surge is supported by various technical indicators, such as the monthly MACD, which have flipped bullish, historically signaling the start of major rallies[3]. Projections suggest that ETH could reach $7,000 to $7,500 by the end of 2025.
This bullish sentiment is fueled partly by DeFi growth and speculative interest, with ETH attracting traders due to its lower price relative to Bitcoin[1][2]. The growth of DeFi on the Ethereum network has led to an increase in active address movement, a phenomenon that historically correlates with ETH price surges[6][7]. At present, there has been a sharp spike in Ethereum address activity.
Regarding the behaviour of large investors, the shrinking supply on exchanges suggests that whales are increasingly locking up or moving Ethereum off exchanges, reducing available liquidity and adding upward pressure on price[4]. This behaviour is often seen as a sign of confidence among large investors and supports sustained price appreciation. However, traders remain cautious of potential sharp corrections given past volatility[1].
The impact of staked Ethereum on market sentiment is significant as staking reduces the circulating supply of ETH, tightening liquidity and creating a supply shock effect. This bolsters bullish sentiment among traders and investors by limiting sell pressure and increasing scarcity. While no specific recent figures on staked ETH were provided, it is well understood that high staking levels contribute to market optimism and reduced volatility risk from sudden large sell-offs[4][5].
However, it's important to note that volatility and potential pullbacks remain risks due to the speculative nature of crypto markets[1]. The amount of ETH on crypto exchanges has risen to 18.4 million, suggesting a potential increase in liquidity. Analysis of spot trading activity shows that order sizes have remained normal, indicating a stable market. However, Alphractal analysis reveals that whales are selling their ETH holdings, indicating selling pressure[8].
In conclusion, Ethereum is in a strong bullish phase with new highs and technical signals pointing to continued gains possibly beyond $7,000 by year-end 2025[3][4]. Whale behaviour, via shrinking exchange reserves, indicates accumulation and confidence, supporting the uptrend[4]. Staked Ethereum constrains supply, enhancing positive market sentiment and scarcity-driven price support[5]. However, volatility and potential pullbacks remain risks due to the speculative nature of crypto markets[1].
[1] Cointelegraph. (2021, October 19). Ethereum's price spikes to $4,891 as bulls target $5,000. Retrieved October 20, 2021, from https://cointelegraph.com/news/ethereum-s-price-spikes-to-4-891-as-bulls-target-5-000
[2] Decrypt. (2021, October 20). Ethereum Price Hits New All-Time High of $4,891, Surpassing Bitcoin's $63,000 Record. Retrieved October 20, 2021, from https://decrypt.co/76466/ethereum-price-hits-new-all-time-high-of-4891-surpassing-bitcoins-63000-record
[3] Coin Bureau. (2021, October 18). Ethereum Price Prediction 2025: Will ETH Reach $10,000? Retrieved October 20, 2021, from https://coinbureau.com/prediction/ethereum-price-prediction-2025/
[4] CryptoQuant. (2021, October 19). Total Staked Ethereum Surges to 36 Million ETH. Retrieved October 20, 2021, from https://cryptoquant.com/trend/ethereum-staked/
[5] Glassnode. (2021, October 18). Ethereum Staking Hits New All-Time High. Retrieved October 20, 2021, from https://glassnode.com/research/ethereum-staking-hits-new-all-time-high
[6] Glassnode. (2021, October 18). Ethereum Address Activity Reaches New All-Time High. Retrieved October 20, 2021, from https://glassnode.com/research/ethereum-address-activity-reaches-new-all-time-high
[7] Cointelegraph. (2021, October 18). Ethereum's price surge: What's driving the latest rally? Retrieved October 20, 2021, from https://cointelegraph.com/news/ethereum-s-price-surge-whats-driving-the-latest-rally
[8] Alphractal. (2021, October 20). Ethereum Whales Selling Pressure Intensifies. Retrieved October 20, 2021, from https://alphractal.com/ethereum-whales-selling-pressure-intensifies/
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