Key Points
- Ethereum’s price has fallen below a crucial resistance level of $2,675 due to increased sell-offs by whale investors.
- The increase in Ether’s supply on centralized exchanges has negatively impacted its bullish sentiment.
In the last 24 hours, as the price of Bitcoin (BTC) retested a range low of around $66.6K, the price of Ethereum (ETH) dropped by over 3 percent to trade at approximately $2,640.
This was observed during the mid-European session on Tuesday, October 22.
Ethereum’s Market Performance
The large-cap altcoin, boasting a fully diluted valuation of around $317 billion and a daily average traded volume of about $17.2 billion, fell below the crucial resistance level.
From a technical analysis perspective, the price of Ether is retesting a significant neckline resistance around $2,800.
This is part of a potential inverted head and shoulders (H&S) pattern, along with a rising divergence of a daily Relative Strength Index (RSI).
If Ethereum’s price consistently closes above $2,800 in the upcoming days, a rally toward $5k will be officially confirmed.
However, on a regular weekly scale, the Ethereum price did not retest the rising trendline, which increases the chances of further correction before the expected parabolic rally.
The next phase of Ethereum’s price action will heavily depend on Bitcoin, which recently teased above $69K.
The entire crypto market could soon follow the precious metal industry led by Gold, which has recently rallied to a new all-time high.
The altcoin season will officially begin once the Bitcoin dominance in the weekly time frame reverses from a rising trend.
The upcoming US 2024 elections amid an ongoing global shift in the economic outlook will also play a crucial role in bolstering the crypto bullish outlook in the near term.
Impact of Ethereum Whales
In the last seven days, the overall supply of Ether on centralized exchanges increased by over 82k units, worth over $220 million.
In the same period, the overall supply of Bitcoin on centralized exchanges decreased by around 43,501 BTC coins, valued at more than $2 billion.
The significant spike in Ethereum’s supply on centralized exchanges has weighed heavily on its bullish sentiment.
On Coinbase, more than $100 million worth of Ether was deposited in the last 24 hours, primarily due to the US spot Ether ETFs.
According to the latest market data, the US spot Ether ETFs registered a net cash outflow of about $20.8 million on Monday.
The remaining spot Ether ETF issuers did not register any cash flow on Monday, thus signaling low demand for the largest altcoin in the market.
The Ethereum network has faced intense competition from upcoming blockchains led by Solana (SOL), especially in meme coin deployment.
