Ethereum has successfully shown its investors that it has growth potential despite going through one of the strongest sell-offs in the asset's history following the liquidations of large institutional investors like 3AC, Celsius and others.
A wild market ride
In the last eight days, Ethereum has gained around 40% to its value if we measure the current rally's result from the absolute bottom reached back on June 18. Such strong growth was most likely fueled by a concentration of "buy" orders of $900.
📈 #Ethereum is enjoying a nice weekend rise, and the #2 market cap asset's price is now up +30% in the past week. It appears there is quite a bit of profit taking on this mid-sized bounce, and the low whale activity indicates it isn't coming from them. https://t.co/MsZUhgjwCR pic.twitter.com/NWFMmWFRGq— Santiment (@santimentfeed) June 25, 2022
Most traders were actively looking for a perfect entry into Ethereum, which was more than possible after the asset plunged below $1,000 and then faced even bigger selling pressure that caused a plunge to the $800 range.
The massive liquidation volume and lack of liquidity allowed investors to push the price of the second largest asset on the market back to $1,200 despite the market capitalization of Ether remaining below the June 1 level.
Traders still prefer profit-taking
Unfortunately, the 30% price increase is not enough for traders and investors to keep supporting the asset as their on-chain activity suggests that the majority of ETH holders are actively taking profits, which creates additional pressure on the assets and prevents them from breaking local resistance levels.
Luckily, Ethereum whales' activity remains relatively low, which shows that selling is not coming from them and the asset still has a chance of showing upward volatility since sales volume remains relatively low.
At press time, Ethereum is moving around the $1,200 price range and consolidating because of a lack of trading volume on the weekend.