Ethereum Price Remains Stable Despite Positive News
Despite recent positive developments, the price of Ethereum has failed to see significant growth. Ark Invest’s filing for the first Ethereum spot exchange-traded fund (ETF) in the United States had a minimal impact on the cryptocurrency’s price, with it only experiencing a slight increase to $1,650. The price has since returned to around $1,628, reflecting a mere 0.1% rise in the past week.
‘Supply & Demand Balance’
An analysis by IntoTheBlock suggests that the current supply and demand balance is a key factor in Ethereum’s stagnant price. The concentration of large holdings near the current price level creates a narrow trading range. IntoTheBlock data reveals that 5.1 million ETH was acquired below $1,600 to establish support, while 6.5 million ETH was purchased above this level to create resistance. This concentration of positions within a limited range constrains the price movement of Ethereum.
‘Automated Buying, Discretionary Selling’
Discretionary sellers seem to have taken control of Ethereum’s narrative after the initial bullish response. This may be influenced by FTX’s plan to liquidate $3 billion worth of crypto holdings, which has raised concerns among traders. The slow market performance of Ethereum and Solana may also be linked to FTX’s holdings, leading traders to approach these assets with caution.
Hot Take:
The price of Ethereum remains relatively stable despite positive news and developments. The concentration of large holdings and impending liquidation of FTX’s crypto assets contribute to the lack of significant price movement. Traders are cautious and hesitant to make substantial investments until there is more clarity regarding these factors.
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