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Ethereum's (ETH) price has shed 2.12% of its value in the last seven days as momentum shifted in the cryptocurrency market. Technical indicators show that the asset might face a correction or a possible pullback as sellers are dominating.
Ethereum aggressive selling creates $570M imbalance
In an update by Maartunn, a market watcher and analyst, Ethereum futures are under pressure as the asset sees a new wave of aggressive selling. Notably, the activities of sellers have created a $570 million imbalance relative to buyers in the market.
According to Maartunn, based on historical antecedents, "this level of aggressive selling has appeared near local tops." This suggests that the high uptick in selling by holders is a result of investors looking to take profit or anticipating a possible price reversal.
Market participants are speculating that, given Ethereum’s recent strong bullish upward movement, the asset’s momentum has weakened. Hence, they are selling to take profit before the coin witnesses a pullback.
Ethereum in the last 24 hours has lost over $200 as it dropped from a peak of $4,484.36 to a low of $4,258.05. As of this writing, the Ethereum price was changing hands at $4,294.00, representing a 2.78% decline within this time frame.
Similarly, trading volume has slipped into the red zone by 0.6% at $35.91 billion. This suggests investors are beginning to pull back, possibly to monitor developments.
Institutional interest offers bullish counterweight
Despite Maartunn’s opinion, there are still some bullish signals in the broader ecosystem. As U.Today reported, there was a recent on-chain movement of 60,000 ETH to Binance Beacon Chain.
The asset was deposited in a staking address, which suggests anticipation for a price gain. This might have prompted the holder to keep it locked away to earn a reward while awaiting a price shift, possibly upward.
Another bullish indicator is the recent bet on Ethereum by an investment firm linked to Jack Ma, Alibaba founder. The investing firm tagged the buy as a "reserve asset."
Dan Burgin
Vladislav Sopov
U.Today Editorial Team