Over 52 Million ETH Bought At $2,300, Will Ethereum Bulls Defend This Support?
12 Oktober 2024 - 2:00AM
NEWSBTC
Ethereum is flat at press time, moving inside a narrow $400 range
with caps at $2,300 on the lower end and $2,800 as the upper limit.
Even though investors are upbeat, expecting prices to soar in the
coming sessions, uncertainty continues to engulf the market.
Ethereum Finds Support At $2,300: Over 52 Million ETH Bought The
second world’s most valuable coin is bearish, dumping by over 50%
from July highs and unable to break the local resistance at $3,500.
As traders closely monitor how price action pans out, one analyst
has picked an interesting development from market data. Related
Reading: Ethereum Faces ‘Sell-Off Risk’ If It Loses $2,300
Resistance – Analyst Citing IntoTheBlock data on October 11, the
analyst observes that over 52 million ETH has been acquired by
traders at around the $2,300 level. Considering the amount of coins
in the hands of traders at this price, this zone is the immediate
support. As such, if buyers have the upper hand, lifting prices
from this point, this level will anchor the uptrend. If sellers
double down, as has been the case in the past few trading months,
the probability of ETH dropping below Q3 2024 lows will be
elevated. Presently, the sentiment is bearish, as seen in the
CoinMarketCap poll. Over 65% of ETH holders and traders expect
prices to struggle in the short term. Therefore, how prices react
at the local support will shape the short to medium-term formation.
A surge, lifting ETH above $2,800, will be crucial in driving
demand, providing the much-needed tailwinds for optimistic traders.
USDT, USDC, And Stablecoin Market Cap Falling: Is Buying Power
Dwindling? Although optimism is high, other related market data
points to weakness. Over the past few trading weeks, the market
capitalization of stablecoins like USDT and USDC has been falling.
As of October 10, the analyst notes it was down $780 million from
recent swing highs, pointing to a possible drop in buying power.
Usually, whenever USDC, USDT, and even DAI move to centralized
exchanges, more users are keen on buying crypto assets, including
ETH and BTC. However, if there is an outflow or its market cap
dwindles, it may mean that more users are cautious and closely
monitor events before committing. Typically, more coins, including
stablecoins, tend to find their way to centralized exchanges when
there are concerns about market prospects. Such inflows tend to
precede a market-wide correction. Related Reading: SUI Rallies
100%, But Signs Of Fatigue Emerge – Is A Drop Incoming? For now,
inflows of ETH to centralized exchanges have not been picked.
However, what’s been happening is that more holders have been
staking. By mid this week, market data revealed that over 34
million ETH remain locked, earning holders a 3.3% APY. Feature
image from DALLE, chart from TradingView
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