Ethereum (ETH) is once again losing momentum after exhibiting a positive bounce the previous week. At the time of publication, ETH has a market valuation of $125 billion and is currently trading 9 percent lower at $1032.
The second-largest economy in the world is unmistakably losing strength, and if it cannot maintain $1,000, it may go as low as $700 or even lower.
Ethereum Falls Below $1k
Over the past few hours, the price of ethereum has deviated from a key level of support and fallen under $1,000. This is why more selling pressure might cause a downturn below $900 or even lower.
To have a chance of refuting the dismal view, the second-largest cryptocurrency by market cap needs to retake $1,100 as support.
Ali Martinez, a market analyst, reveals some important on-chain statistics to look out for! Martinez stated that there has lately been a significant increase in the supply of ETH on the exchanges, citing statistics from Glassnode. He stated:
“More than 200,000 $ETH. worth over $200 million, have been sent to known cryptocurrency exchange wallets over the past five days.”
Source: Ali Martinez
The number of ETH addresses that have experienced losses as a result of the current correction has also increased significantly. This can result in another sell-off. According to Ali Martinez:
“Ethereum is at risk of a steep correction. Transaction history shows that nearly 468,000 addresses with more than 7 million #ETH are now underwater and could soon start exiting their positions. A spike in selling pressure could trigger a downswing to $700 or even $600.”