Ethereum price broke through the $2,579 resistance on Monday. This led to older and less active coins changing hands. Many of these coins appear to be making their way to crypto exchanges, as evidenced by the sharp increase in the net flow of ETH to these platforms.
This could put downward pressure on altcoin prices, putting them at risk of losing their recent gains. This analysis delves into what coin holders are expecting.
Long-term Ethereum holders aim to profit
Broad market sentiment shifted from neutral to greedy as trading activity began to gain momentum. Ethereum price has increased by 4% in the past 24 hours.
This price surge prompted many dormant coin holders to become active, as evidenced by the sharp increase in the age of ETH being consumed. The index, which tracks the movement of long-held coins, surged more than 400% on Monday to reach 66.42 million coins, its highest level since October 4, according to Santiment data.
Read More: How to Buy Ethereum (ETH) with Credit Card: The Complete Guide
Ethereum consumption age. Source: Santiment
If the usage period of an asset is consumed rapidly, this indicates that many previously inactive coins or tokens have recently been moved or traded. Generally, when a dormant coin returns to circulation, it indicates a resumption of activity by long-term holders.
However, the accompanying increase in Ethereum’s net flow volume suggests that a significant portion of these reactivated coins were deposited on exchanges. An assessment of Ethereum trading activity by BeinCrypto reveals that 51,881 ETH coins worth more than $135 million were transferred to the cryptocurrency exchange on Monday, based on current market prices. .
An increase in the exchange margin of an asset means that more investors are selling than buying.
Ethereum net transfer to exchange. Source: Glassnode
ETH Price Prediction: Price Risk 10% Down
If the selling activity gains momentum, Ethereum price could fall towards the resistance level at $2,579. If this level fails to hold as support, the altcoin price may fall further to the support formed at $2,320, which represents a 10% decline from the current price of $2,616.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
Ethereum price analysis. Source: TradingView
However, if selling pressure eases and new demand flows into the market, the above bearish forecast will be invalidated. Ethereum price will extend its rally and move higher towards the next major resistance level at $3,102.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although BeInCrypto strives for accurate and unbiased reporting, market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms of Use, Privacy Policy, and Disclaimer have been updated.
