📊 The price of Ethereum increased by 60%, leading to an accumulation of $3.4 billion in $ETH over 30 days.
Ethereum experienced a significant price surge, increasing by 60% over the past month to reach $2543. This rise is largely attributed to substantial accumulation by investors, totaling 1.34 million ETH worth over $3.42 billion.
Despite the rise, some critical investors are beginning to exit, seeking to secure their profits before potential risks arise.
🔸 #Ethereum Investors are absorbing the supply.
The balance of Ethereum on exchanges decreased by 1.34 million ETH over the past month (from April 21 to May 21), marking a significant shift in market conditions. This reduction in supply is valued at over $3.42 billion and is largely due to the Pectra upgrade, which boosted investor confidence in Ethereum's long-term growth.
The reduction in supply on exchanges reflects a growing belief that Ethereum can continue its upward path. This rush to acquire Ethereum has created a FOMO (fear of missing out) effect, contributing to the price increase.
However, the macroeconomic dynamics surrounding Ethereum are ambiguous, with long-term holders (LTH) demonstrating behavior suggesting caution. The Age Consumed metric jumped twice this week, indicating that LTH are selling a significant portion of ETH to lock in profits.
This is the largest wave of selling in the past seven months, indicating that these holders believe Ethereum may have peaked in the market. The LTH sell-off draws attention to potential risks that could impact Ethereum's future performance.
🔸 #ETH Price rally.
Currently, the price of Ethereum is trading at $2543, representing a 60% increase over the past month. However, the price faces resistance at $2654. Breaking through this resistance is crucial for Ethereum to continue its upward trajectory.
The price is likely to exceed this level if Bitcoin forms a new all-time high (ATH), as Ethereum has a strong correlation with Bitcoin. This move could push Ethereum closer to $3000, further strengthening its optimistic outlook.
