Ethereum ($ETH) market has witnessed a sheer dip over the past months. As per the analytics from Ali, following the recent correction of up to 57% since December, the Ethereum market reportedly highlights a likely accumulation opportunity. The prominent crypto analyst took to social media to provide insights into the present status of the Ethereum ecosystem.
Ethereum’s Recent Dip from $4,100 to $1,750 Highlights Decline in Investor Sentiment
In line with the analytics, Ethereum has reportedly plunged from $4,100 to just $1,750 since December last year. As a result of this, investor sentiment now shows significant fear, prompting a wider selling wave throughout the market. The fear around the price action of Ethereum has led to a noteworthy dip in large holdings also. In this respect, the number of addresses that hold above 10,000 $ETH coins has declined from 999 to the latest 919. This also reflects a plunge in confidence among top investors. Apart from that, whales have increased selling pressure with sell-offs of more than 130,000 $ETH during recent weeks.
The respective big-scale sell-offs come parallel to huge outflows from the ETF market of EThereum. Over the recent month alone, a $760M has left the $ETH ETFs, further fueling the overall bearish sentiment. In addition to this, the dip in the $ETH coins onto crypto exchanges has emerged as another contributing factor. Hence, more than 100,000 $ETH coins have been shifted to trading entities, specifically indicating the preparation of investors for selling instead of holding.
Along with that, the technical analysis shows the indication of a likely further downside. A collapse from the ascending triangle price pattern signifies a potential dip toward $1,000. Moreover, another crucial downside target stands at $1,440, detected via the pricing bands examination. At the moment, Ethereum witnesses $1,887 as a noteworthy support level. However, if it fails to hold on to this level, the other potential price support levels include $4,440, $1,250, as well as $1,000. On the other hand, the $2,250-$2,610 range shows significant resistance.
The Market Correction Underscores Likely Accumulation Opportunity
According to Ali, the current price action of Ethereum seems to be bearish, underscoring a likely accumulation opportunity for long-term investors. Based on historical data, market fear often presents accumulation opportunities. Nevertheless, the next week will play a vital role in determining the next move in the Ethereum market.
