Recent analysis of on-chain data reveals notable trends for Ethereum (ETH), which is currently facing a price correction after peaking at $4,532. The altcoin experienced major selling pressure, dropping over 3% amid widespread profit-booking activity and a sell-off across the broader cryptocurrency market. This downturn has brought ETH’s price closer to critical support levels while raising concerns among traders.
Data from Glassnode indicates that the percentage of ETH’s supply in profit reached an impressive 99.68% earlier this month, a level historically associated with imminent price corrections. As of the latest figures, this metric has slightly decreased to 98.14%. Such peaks have often preceded price declines; for instance, when the supply in profit reached 99.88% on August 22, ETH saw a 9% drop shortly after.
Market dynamics are compounded by futures market data. The taker buy-sell ratio has fallen to 0.91, indicating a decrease in aggressive buyers compared to sellers. This, coupled with a 29% rise in daily trading volume to $36.65 billion, highlights the heightened volatility surrounding Ethereum at this time. Notably, liquidations of ETH have surged to $108 million, with a significant portion resulting from long positions.
Despite these challenges, institutional confidence appears robust. Firms like Bitmine Technologies and SharpLink Gaming persist in their ETH purchases, underlining ongoing institutional interest in the market.
Looking ahead, analysts suggest that as long as Ethereum holds above the $4,500 support level, the lateral downside risks will remain limited. Observations indicate that the price range of $4,800 to $4,880 serves as a crucial resistance zone for ETH’s next prospective upward movement. Analysts point out that a daily close above $4,880 could trigger significant positive momentum and a potential short squeeze, fueling further gains.
Amidst this narrative, the burgeoning interest in meme coins is also notable. Wall Street Pepe (WEPE), inspired by the iconic Pepe meme, is gaining traction as a vibrant new entrant within the crypto community. WEPE aims to empower retail traders with exclusive market insights and tips, positioning itself as a community-driven trading initiative.
In the rapidly changing landscape of cryptocurrencies, while Ethereum faces its challenges, institutional backing and evolving market dynamics suggest a complex but potentially rewarding investment environment. As traders navigate these conditions, the balance between profit-taking and new investments will be pivotal in shaping the future of ETH and broader market trends.
