Ethereum, a leading cryptocurrency, has seen a surge in transaction volume reaching a four-month high on January 25, as per Santiment data. This uptick in transaction activity indicates significant Ether exchanges among market participants on trading platforms. Such movements can suggest either bullish or bearish trends, contingent on whether trades are profit-taking or loss-cutting, alongside the asset’s current price trend.
As of now, Ethereum’s price stands at $2,217 (R41,969.98). On-chain metrics, specifically Transaction Volume, signal a potential risk for a price decline. This recent spike in transactions includes substantial movements by entities like the bankrupt crypto lender Celsius. Analysis of large wallet transactions within the Ethereum network suggests that major holders, or whales, are engaging in profit-taking activities.
Ethereum’s price trajectory has been downward since January 12, forming a pattern of lower highs and lows, breaching a crucial trendline. Currently, Ethereum is trading below two significant Exponential Moving Averages (EMAs): the 10-day at $2,325 (R44,008.30) and the 50-day at $2,308 (R43,683.92).
Should this correction continue, Ethereum may find support at $2,165 (R41,009.10), a level that has been a consistent support since December 3. Failure to maintain this level could lead to a further drop to the critical $2,000 (R37,880.00) mark.
The Santiment data underpins the likelihood of a correction in Ethereum’s price. However, a daily candlestick closure above $2,232 (R42,279.68) could negate this bearish outlook. South African investors are closely monitoring these developments, as the potential price movement of Ethereum could significantly impact the local crypto market. This situation underscores the importance of understanding global trends and their potential influence on the South African cryptocurrency landscape.
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