Ethereum Consolidates: What Does a 3-Week Dull Period Mean for Investors?
One of the most common questions among investors is whether Ethereum has capitulated or is just going through a period of consolidation. ETH has been trading in a narrow range and hasn’t overcome significant resistance for almost three weeks. It continues to trail Bitcoin on the weekly chart, showing smaller increases and more pronounced pullbacks. Moreover, the profit margin on the ETH supply has decreased from 99% to 80%. This indicates that about 20% of the supply is now a loss. Compared to earlier in the month, it indicates that a greater number of holders are currently underwater.
Ethereum’s Buy/Sell Delta Turns Negative
Psychologically speaking, declining momentum and narrowing profit margins may pave the way for a shakeout. Interestingly, for the first time since Q2, the ETH Buy/Sell Pressure Delta is negative. This suggests that sellers are beginning to gain ground. It’s uncertain if ETH’s $3,900 level can serve as a solid base given this configuration. Finding out if Ethereum is consolidating or slipping into early-stage capitulation is ultimately the new focus. However, investor conviction has a significant impact on how strong Ethereum’s floor is. Momentum has yet to confirm a bottom at the institutional level.
Ethereum Shows Resilience as Exchange Reserves Fall
More broadly, Ethereum’s total exchange reserves dropped to 61 billion, a fall of 4 billion. As more ETH left exchange wallets and went into long-term holdings, this circumstance only served to confirm the trend of a declining liquidity supply. Underwater holders, meanwhile, have not displayed any indications of surrender. This implies that FOMO continues to stabilize sentiment at the present price levels. ETH’s sideways chop appears to be more base-building than weakening in this context. In other words, although weak hands continue to tremble, the HOLDer’s conviction remains unwavering.
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