Ethereum Price Holds $2,200 Support Amid Crypto Market Downturn
Ethereum price has managed to hold the $2,200 support level while the broader crypto market experienced a downturn. The global crypto market capitalization has shrunk by 7% in the past week, resulting in a loss of $108.5 billion in valuation. Despite this, Ethereum’s price decline has been relatively resilient compared to the industry average.
Ethereum Whale Activity Indicates Strong Demand
On-chain data reveals that there has been a significant increase in whale trading activity on the Ethereum network. Santiment’s Whale transaction count metric shows that the number of transactions involving Ethereum exceeding $100,000 reached its highest level since January 11. This rise in whale activity suggests that corporate entities are accumulating ETH at high volumes, potentially in anticipation of an upcoming ETH spot ETF verdict.
Ethereum Investors Opt for Long-Term Storage
There has been a steady decline in Ethereum reserves on exchanges, which aligns with the increase in whale activity. This trend indicates that investors, particularly value investors and whales, are opting for long-term storage or staking contracts rather than keeping their ETH on exchanges. Over the past few days, approximately 150,000 ETH worth $330 million has been moved from exchanges into long-term storage.
Can Ethereum Price Hold Above $2,000?
The decrease in exchange supply and the rise in whale activity have reduced selling pressure on Ethereum compared to other altcoins. Additionally, data from IntoTheBlock suggests that a large cluster of ETH holders acquired their coins at higher prices and may engage in covering purchases if the price approaches their entry points. This could trigger an instant rebound for Ethereum price. However, reclaiming the $2,500 territory in the current market conditions may be challenging and could lead to another correction phase.
Hot Take: Ethereum Shows Resilience Amid Market Downturn
Ethereum has displayed resilience by holding the $2,200 support level during a crypto market downturn. The increase in whale activity and the decline in exchange reserves indicate strong demand and a preference for long-term storage among investors. These factors, along with the potential for covering purchases from ETH holders, position Ethereum to defend its price and potentially experience a rebound. However, reclaiming higher price levels may be difficult in the current market environment.
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