- ETH at Crossroads After Retesting Key Support Range.
- Bulls are struggling to secure their dominance as the market remains fearful.
ETH could be ripe for a recovery in mid-October, having been in a bearish pattern since the beginning of the month. This is not just an assumption, but a confluence of several observations that indicate that the odds could be in the bulls’ favor.
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The Ethereum network’s native cryptocurrency recently came close to a five-month low ($1631). This affinity for downside has seen selling pressure near the aforementioned bottom, followed by notable consolidation and short-lived rallies. At least two were curtailed after previously breaching the $1745 price level, thus short-term resistance.
#Ethereum moves within a fixed range. Interestingly, the TD Sequential presented a buy signal at the lower end of this range, indicating a buy signal is in place $ETH could recover to $1,630.
But be careful – if #ETH closes below $1,530, then the bullish outlook becomes invalid. pic.twitter.com/hvwoyDy7AB
— Ali (@ali_charts) October 11, 2023
X-based analyst Ali highlighted the aforementioned range, suggesting that ETH is about to turn in the bulls’ favor. The price recently retested its previous short-term support and consolidation was clearly visible. This could be an opportunity for short-term traders to capitalize. However, Ali suggested that a deeper price drop could wipe out support and lead to even lower prices.
There was a real possibility for more negative consequences, especially if the selling pressure is caused by external factors. For example, recent geopolitical tensions in the Middle East could destabilize matters further. This therefore leads to an environment that is not conducive to investments.
So far, ETH price performance seems to remain within the support range. This suggested there may be a revival in demand or a slowdown in selling pressure. However, let’s look at the data to really get a rough idea of what’s happening.
Can ETH Bulls Secure Enough Momentum for a Rally?
The exchange flow data showed that foreign exchange outflows remained lower than inflows. The two metrics showed a sharp increase in activity over the past five days, which appears to have leveled off over the past 24 hours. Currency outflows fell significantly more intensely, indicating that confidence in the market is low.
Source: CryptoQuant
While the exchange flow data may provide a somewhat dull picture of current demand, it may not entirely dictate the next step. Whales have a much greater impact on price movements and are therefore more inclined to be smart with money.
How much is 1,10,100 ETHs worth today?
Data on the chain showed a divided front on whales. Addresses holding between 1,000 and 100,000 ETH have had their balances reduced over the past four weeks. Meanwhile, addresses with more than 100,000 coins have seen a net gain over the same period.
Source: Santiment
The supply distribution shows that the top addresses currently control the majority of the circulating supply. In short, a substantial number of whales are buying the dip.