The Ethereum market has just witnessed a large amount of ETH withdrawn from whale wallets, reducing supply on exchanges and causing speculation about the possibility of significant price increases amid still volatile market sentiment.

Although ETH supply has significantly decreased on exchanges due to whale withdrawals, negative sentiment factors and technical resistance still make the market outlook difficult to predict in the short term.

KEY CONTENTS

Whales have withdrawn 200,000 ETH in the last 48 hours, reducing supply on exchanges and causing significant market sentiment volatility.

ETH price is approaching the real price range, creating profit-taking risks for long-term investors.

Resistance at the $4,900 level is crucial as market sentiment weakens and the risk of a correction increases.

Ethereum whales have withdrawn 200,000 ETH in 48 hours - What does this mean?

In the past 48 hours, whales have withdrawn a total of 200,000 ETH from exchanges, reducing sell supply in the market and creating new expectations for Ethereum price increases.

Large ETH withdrawals often come with the intent to hold, as large holders prioritize storing assets over continuous trading. This helps reduce short-term selling pressure and contributes to maintaining a more stable price amid a sharp decline in exchange supply.

History has shown that large withdrawals from exchanges precede price increase phases, as selling pressure decreases. However, this effect only occurs strongly if buying demand is large enough to absorb the reduced supply; otherwise, this action will not create the expected price increase.

Is reduced supply enough to trigger a new price increase for ETH?

Whale withdrawals of ETH immediately affect supply - but do not always create an immediate price increase effect without supporting demand.

In cases where demand does not increase timely, liquidity shortages only create temporary impacts on price, especially when small investors remain cautious and are not ready to re-enter the market. This is why investors need to closely monitor whale activities as well as the response of this cash flow in the coming days.

If there are positive signals from both demand and market sentiment, the likelihood of a new price increase will become clear and provide momentum for ETH in the upcoming period.

Is the ETH price facing an overextended real price range - Should investors be cautious?

On-chain data shows that ETH is approaching the highest real price range - often the area where experienced investors begin to consider profit-taking.

This index reflects the correlation between market price and average purchase price, helping to determine if the market is overvalued. In previous strong upcycles, ETH was still able to surpass this area before entering an accumulation phase.

Therefore, investors need to pay attention to the level of demand growth at this time: Only when demand is strong enough to balance profit-taking pressure can ETH maintain an upward trend in higher price ranges.

A price increase is only sustainable if demand growth keeps pace with the reduction in supply following large withdrawals from exchanges.

- According to CryptoQuant's market report, 2024

How does the real price range affect profit-taking actions?

The real price range is a useful indicator that helps investors recognize when the market is 'overbought', thereby increasing the likelihood of significant profit-taking actions from long-term investors.

As ETH approaches the upper area of this price range, the risk of selling pressure increases as many investors want to preserve profits made during recent growth cycles. However, in some strong market cases, prices may continue to sustainably surpass this area, opening up new long-term growth trends.

Therefore, closely monitoring the movement of the real price range and comparing it with absorption from buyers is crucial in minimizing reversal risks during high volatility phases.

Is the $4,900 resistance the biggest barrier for Ethereum currently?

Technical charts indicate a key resistance level around $4,900 - this is also the convergence area with Fibonacci targets, forming a short-term resistance barrier that ETH struggles to overcome.

Conversely, the support area at $4,770 is seen as quite solid with reinforcing resistance, keeping ETH's bullish outlook positive despite the correction.

Additionally, the MACD indicator remains above the signal line, indicating ETH's short-term trend is strongly upward despite the market just going through a sideways phase. When ETH surpasses $4,900, the next target will be the $5,800 area - if it fails, a slight short-term correction may occur.

"Overcoming strong resistance areas is always a challenge, but it is also a prerequisite for opening the next wave of growth."

- Technical analysis data from TradingView, 2024

What does market sentiment volatility mean for risk?

Ethereum's market sentiment index is currently at -0.093, down sharply from a peak of 3.9 in mid-August - reflecting caution and weak sentiment in the market as prices continuously test strong resistance areas.

Attention from social media remains at 9.6%, significantly lower than the previous peak of over 19%. Investors are gradually losing faith after multiple price failures towards $4,900.

Therefore, if ETH cannot surpass this resistance, the likelihood of increasing profit-taking selling pressure and extending negative conditions is very high. This requires investors to manage expectations and not act on emotions during periods of continuous market volatility.

Will Ethereum surge strongly, or is there still profit-taking risk?

When factors like large withdrawals, positive technical signals, and divided market sentiment occur simultaneously, ETH is facing a critical testing phase.

If ETH surpasses the $4,900 mark with strong cash flow, limited supply, and active network activity, it could push prices higher. However, with real price signals near dangerous areas and weak sentiment, profit-taking risk at this price level is a reality to consider.

Frequently Asked Questions

Why is the withdrawal of ETH from exchanges by whales often seen as a positive signal?

Withdrawing ETH from exchanges reflects a long-term holding intention, reducing short-term selling pressure and often accompanied by expectations of price increases if demand is strong enough.

How to determine if the real price range is a risk warning?

As market prices approach the real price range, long-term investors often begin to take profits, causing significant selling pressure and potentially leading to price adjustments.

What does the $4,900 resistance mean for ETH's upward momentum?

This level is a key point technically and sentimentally; if surpassed, it will open a new upward cycle, while failure could easily pull the market into a short-term correction.

How is market sentiment volatility affecting ETH at this time?

Weak sentiment makes price reactions to key levels likely negative, increasing the risk of corrections if strong selling occurs at resistance areas.

How can investors manage risk in the current context?

Monitoring supply, technical indicators, and whale activity while avoiding emotionally driven decisions is the most important thing.

Source: https://tintucbitcoin.com/ca-voi-day-ethereum-vuot-4-900-usd/

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