Ethereum Holders Remain in Profit Despite Price Decline
Ether (ETH) has experienced a decline in value, dropping from $4,000 to $3,500 over the past six days. However, despite this decrease, the majority of ETH holders are still in profit. According to crypto market intelligence platform IntoTheBlock, around 89% of ETH holding addresses are currently in the green.
Slump in Ether’s Price
The drop in Ether’s price began on March 13 following the Dencun upgrade. This upgrade aimed to reduce transaction fees for Ethereum-based layer-2 solutions and improve the network’s scalability.
Initially, the Ethereum network showed positive signs after the upgrade. The total supply of ETH continued to decrease, daily transactions increased significantly, and more ETH was staked.
However, analysts’ warnings of a price correction were proven correct within 24 hours. Ether fell below $3,700 after leaving the $4,000 range.
On-chain Sell Volume and Support Levels
Despite the price decline, 89% of ETH holders are still in profit. IntoTheBlock found that the largest potential on-chain sell volume is at $3,700, where over 991,000 addresses acquired 4.35 million ETH.
If ETH rebounds from its current trading range of $3,500, it could surpass $4,000 and reach a new high in the coming weeks. However, a further decline could push its price below $3,000. Analysts believe that ETH may find support around the $3,500 region and initiate a fresh rally. If the decline continues, its support level could drop to $3,181 and $2,966.
Potential Catalyst for ETH Surge: Spot Ethereum ETFs
The approval of spot Ethereum exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) could potentially drive a surge in ETH’s price in the coming weeks. The SEC has delayed its decision on several applications for these products until May 23.
VanEck, an asset manager, believes that spot Ethereum ETFs could be even more popular than Bitcoin ETFs if approved by the SEC. The firm argues that Ethereum ETFs could attract more demand due to the market size of Ethereum being as large as Bitcoin.
Price Predictions for ETH
Standard Chartered Bank has predicted that ETH could reach $8,000 by the end of 2024 and $14,000 by 2025. These optimistic price predictions suggest potential long-term growth for Ethereum.
Hot Take: ETH Holders Remain Optimistic Despite Price Decline
Despite the recent decline in Ether’s price, the majority of ETH holders are still in profit. This indicates a positive sentiment among investors and suggests that many believe in the long-term potential of Ethereum.
While short-term price movements can be unpredictable, analysts believe that ETH may rebound from its current trading range and potentially reach new highs in the coming weeks. The approval of spot Ethereum ETFs by the SEC could serve as a catalyst for this surge.
Overall, despite the current price decline, it seems that ETH holders remain optimistic about the future prospects of Ethereum. With ongoing developments and potential catalysts on the horizon, it will be interesting to see how Ether’s price evolves in the coming months.
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