key takeaways
- Ethereum has rallied more than 20% in the past four days.
- Meanwhile, around 193,000 Ethereum have been sent to crypto exchanges.
- Further selling pressure could trigger a correction towards $600.
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Ethereum looks like it is in danger of a bullish correction as the crypto approaches its rocky June. Market participants are rushing to the exchanges to exit their positions, while Ethereum is sitting with little or no support.
Ethereum faces lower levels
Ethereum looks ready for a significant price action as the selling pressure builds up.
The number two cryptocurrency has suffered a price drop of over 20% over the past four days. It traded at a local high of $1,280 on June 26 and then declined to $1,015. Notably, Ethereum broke below the crucial $1,000 level on June 18, with losses likely to extend further as downside pressure builds up.
On-chain data from Glassnode shows that the number of Ethereum held on known cryptocurrency exchange wallets has increased significantly. Since June 26, approximately 193,000 ETH worth about $200 million has flown into the trading platform. The spike in held balances on exchanges coincides with the recent downside price action, indicating a selloff.
Furthermore, the transaction history shows that Ethereum lacks the demand it needs to prevent further losses. The next important support level for Ethereum is at $600, where there is 9.55 million ETH from 12.8 million addresses. This interest zone is important because market participants can sell their stake to prevent their investments from going “out of the money”.
The most important resistance level for Ethereum is currently at $1,120, where 468,000 addresses have previously bought over 7 million ETH. A daily candlestick above this barrier could invalidate the pessimistic outlook, potentially leading to a rise to $1,300 or $1,500.
Disclosure: At the time of writing, the author of this feature held BTC and ETH.
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