Ethereum, along with the entire crypto market, followed Bitcoin’s lead when it picked up this month. The altcoin is trading at $ 3914.85 and is in a good position, and the same can be seen from an investor’s perspective as well. But this development could stop the good mood on the market.
Ethereum on a roll
After a 30.40% rally this month, ETH managed to make things easier for its investors. At the time of writing, the number of addresses lost has dropped to a 1-month low of just 2.17 million, which is just 1% of all Ethereum investors.
In fact, investors likely took advantage of Ethereum’s rally towards $ 4,000 and potentially sold their holdings. And these salespeople weren’t normal traders either. Medium-term holders who held ETH for 3 to 6 months and long-term holders who held their credit for at least 2 to 3 years sold a large part of their holdings that month.
The medium-term holder offer hit a 6-month low and the long-term holder offer fell to a 7-month low.
Surprisingly, some of the ETH was actually picked up by whales or wealthy cohorts of exchanges, as addresses with more than 10,000 ETH went up in 48 hours. Even with only 10,000 ETH in each address, at least $ 4.2 billion worth of ETH has been bought.
But the MTH and LTH sale was not an accidental profit-incident sale. There is a good chance these investors are preparing for a price decline soon.
A drop in prices?
As a matter of fact. The very first indication of this comes from the top of the market created today when supply hit 98.62% in profit. A market high is usually followed by a certain price decline. Also in the past (September 15) when a market high formed, a price decline followed and the same was hinted at back then.
So it wouldn’t be a surprise if the same thing happened again. In addition, the current position of the Relative Strength Index supports the same argument. We can see that the RSI is on the verge of breaking the overbought zone for the first time this month.
However, we need to watch whether the RSI cooling is accompanied by a fall in prices or a simple consolidation.
In any case, it is always better to take precautions than to regret.