The Weakness of Ethereum (ETH) and Potential Correction
The price of Ethereum (ETH) has been steadily declining, with a decrease of more than 10% in the past week, dropping to $1,650 levels. Technical analysis suggests that ETH may experience a further correction of 45% from its current levels.
Signs of Lagging Network Fundamentals
The Ethereum network is also showing signs of weakness, as the monthly average of active ETH addresses is lower than the annual average. This indicates limited on-chain activity and is typically a sign of decreased network health and utilization.
Ethereum Futures ETF and Potential Collapse
Although there are reports that the U.S. Securities and Exchange Commission will approve the Ethereum futures ETF, on-chain data suggests that Ethereum whales have not embraced the bullish sentiment. They have continued to sell off their holdings, even after a partial price recovery.
Whale Selling and Ethereum Price Decrease
Ethereum whales holding 10,000 to 100,000 coins have been consistently selling since mid-July. During the period from July 14 to August 18, they reduced their holdings by 1.12 million coins, aligning with the 18% decrease in ETH price during the same timeframe.
Uncertain Future for Ethereum Investors
It is unclear whether the situation will improve for Ethereum investors in the near future. However, the introduction of Ethereum Futures ETF could attract institutional participation in the long term. The sustainability of ETH above $1,600 levels remains to be seen.
Hot Take:
Ethereum faces challenges with its price decline and weakening network fundamentals. The selling pressure from Ethereum whales indicates a lack of confidence in the market. The arrival of Ethereum Futures ETF may provide some long-term support, but the short-term outlook remains uncertain. Investors should closely monitor the price levels and market trends to make informed decisions.
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