From a technical point of view, Ethereum’s price action has been relatively moderate lately, with buyers struggling to build a sustainable upward trend as the crypto closely follows Bitcoin’s price action.
One data statistic indicates that investors have risen sharply during the recent cryptocurrency downturn.
This accumulation has led to investor profitability reaching a historical resistance area as 80% of ETH’s offering is now in a profitable state.
In the past, this only lasted for a short time, as this rate tends to drop rapidly when it reaches this rate.
This could happen if the cryptocurrency shows technical signs of peaking in the medium term.
Ethereum shows signs of a topping out as momentum falters
Ethereum has stalled in a tight period of sideways trading in recent days and struggled to gain decisive momentum in both directions.
This consolidation has largely come about due to the close correlation of ETH with Bitcoin, which traded around $ 9,700 in the past week.
At the time of writing, Ethereum is trading marginally at its current price of $ 243, representing a slight decline from recent highs of $ 255 reached at the peak of last week’s upward trend.
Yesterday, sellers attempted to trigger a sharp downturn that eventually led the crypto to a low of $ 237. The support at this level was quite strong as it was followed by a strong rebound leading to a high of $ 247.
These two levels seem to mark the upper and lower limits of a trading range in which it is currently caught.
According to a NewsBTC report yesterday, analysts believe that Ethereum’s strength is showing some signs of faltering. In particular, a trader noted that it is imperative that the crypto stay above USD 217 in order to keep its upward trend intact.
ETH is starting to confirm [a trend reversal]. Is likely to accelerate in the short term. Would really like to see the last HL hold to stay bullish on alts. Don’t close below $ 217, ”he said.
Profitable ETH stock hits historical resistance
The percentage of Ethereum that is profitable has also reached a significant level.
According to analysis platform Glass node.80% of the total ETH offering is currently profitable.
This is the third attempt to reach above 80% in more than a year, and previous attempts closely preceded sharp price declines.
“The percentage of the ETH offer in profit fluctuates around 80%. It is the third attempt within a year to break through this level. The last time Ethereum’s offer of profit was significantly above 80%, ETH cost about $ 700. “
The next few days should be pretty illuminating as to whether or not Ethereum is about to see a major decline.
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