Categories: Crypto NewsNews

Ether (ETH) falls even more as exchange inflows increase

Published by
Nonhlanhla P Dube

Following a good rebound last week, Ethereum (ETH) is currently trading 9% down at R16.9K. The cryptocurrency’s market cap is approximately R2 billion at the time of writing. The economy of the world’s second-largest crypto is showing indications of weakness. If it is unable to sustain its R16.4K level, it may fall as low as R11.4K or lower.

Ethereum drops and falls below R16.4K

In the last few hours, the price of Ethereum has fallen below R16.4K. This could indicate that further selling pressure is on the way. It is possible that the price will fall below R14.7K or even lower. To have a chance of changing its bearish outlook, ETH must regain support at about R18K.

Ali Martinez, a market analyst, discussed the various on-chain data that may be used to understand the current state of the market. According to Martinez, the amount of ETH traded on exchanges has increased significantly, based on Glassnode statistics. “Over the last five days, more over 200,000 ETH, worth over, have been transmitted to recognized cryptocurrency exchange wallets,” he said.

A number of ETH addresses have suffered losses as a result of the current correction. This could result in another sell-off. “Ethereum is at risk of a steep correction,” writes Ali Martinez. According to transaction history, almost 468,000 addresses holding more than 7 million #ETH are presently underwater and may soon begin to abandon their positions. A surge in selling pressure might precipitate a drop to R11.4K or even R9.8K.”

Whale populations continue to grow

Despite the current market turmoil, whales continue to demonstrate their strength. Despite the recent market volatility, they have continued to accumulate.  “Ethereum shark and whale addresses (holding between 100 to 100k $ETH) have collectively added 1.1% more of the coin’s supply to their bags on this -39% dip. Historical evidence points to this tier group having alpha on future price movement,” according to Santiment, an on-chain data source. 

The deterioration of the global economy and market circumstances is putting enormous pressure on the US equities market. Recent data indicating a drop in consumer confidence may further add to the selling pressure.

The ripple effects of a more severe correction in the cryptocurrency market may last longer.

A Difficult Month

Bitcoin fell below R328K on Thursday, extending its three-week losing skid. The digital asset fell below R328K for the third time in a row. The cryptocurrency market has already begun to decline this month.

Bitcoin’s price has entered a period of consolidation, and it appears that its downward trend has ended following a significant shakeout. The support area of around R279K is projected to provide some assistance, maybe triggering a short-term recovery towards the R492K zone. The price volatility of bitcoin is influenced by a variety of reasons, and these factors will continue to influence its price.

Deutsche Bank is optimistic

Despite the various reasons affecting the cryptocurrency industry, it remains under pressure. The attempts of central banks to drain liquidity, as well as the rapid emergence of many cryptocurrency crashes, have damaged investor trust.

The market is very different from where it was at the end of 2020. Bitcoin set a new high of R328K on December 16, 2020. Bitcoin saw a big drop at the start of this year, which was dubbed “Bloodbath Week.”

Despite Bitcoin’s current price collapse, which has seen it drop by roughly 60% in the last 90 days, Deutsche Bank believes the cryptocurrency’s price might still rise by 30% by the end of the year.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
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