Ethereum is currently down by 5% compared to its previous peak. This raises questions about whether Ethereum will eventually reach $5,000.
Ethereum Dencun: The long-awaited Ethereum Dencun upgrade On March 13, the mainnet was launched. Despite that, the ETH rate has not been able to sustain an upward trajectory since deployment. This puts a question on whether a rally towards $5,000 is possible in the short-term.
Dencun traders selling Ethereum upgrade
The Ethereum team announced that the new Ethereum platform was a success. Sepoli Dencun test run upgrade It sparked Bullish on January 30 expectations ETH is a popular cryptocurrency among traders.
The Overlooked next Ethereum price soared 70% in 40 trading days. It peaked at $4.092 on Wednesday, March 12, as traders jumped on board the low transaction costs and improved scalability.
As the latest update went live This week on the mainnet ETH separated from the broader cryptocurrency market as traders began a sell-off.
The taker ratio (buy/sell) is used by CryptoQuant to analyse trading on cryptocurrency exchanges. It compares market orders that are executed by both buyers and sellers.
This metric gives real-time insight into the market pressures and imbalance between the buying and selling of a particular cryptocurrency.
Early March saw a negative shift in the ETH buyer/seller ratio as prices soared to $4,000 and beyond. The ratio dropped to its lowest level in 40 days, a mere 0.93%, on March 14th. This was just 24 hours after Dencun. upgrade went live.
The negative taker ratio indicates that there is more buying than selling on the ETH perpetual swaps market.
If this pattern appears at a time when prices are falling, then it could indicate that the sellers may be able to push down the price even further.
The market has been flooded by investors with an additional 74,000 ETH
After the Dencun, there was a significant selling pressure on Ethereum. upgrade This is a classic cycle of buy the rumor and sell the news.
This week’s influx of new ETH-coins into exchange wallets confirms that many investors seek out short-term investment opportunities.
Below is a chart that shows real-time updates in the amount of crypto tokens investors have placed in their exchange hosted wallets.
In the graph above you can see that Ethereum investors had over 13,8 million ETH on exchange wallets when the week began, March 10, 2010. On March 14, this figure had risen to over 13 million.
This week, Ethereum coin holders moved 74,000 ETH into their exchange wallets, possibly to look for short-term sales opportunities.
At the current price, 74,000 ETH is worth about $290 million. This large influx of coins in the exchange reserves could dilute supply. If a surge in demand does not match it, ETH’s price could fall further under $3,900 over the next few days.
What will Dencun do? upgrade What is the impact of Ethereum’s Price?
Dencun will not be able to outperform ETH in terms of market trends. upgrade As bull traders initially predicted, the Ethereum market will reach $5,000.
The price of ETH will most likely fall below $3.900 in the coming months as traders continue to sell the news and add more coins into the market.
This $3,840 level remains a crucial support, since IntoTheBlock data on in/out-of-the money shows that a cluster 1.7 million addresses bought 676.500 ETH for an average of $3.836. These holders could unintentionally trigger a price rise if they make cover purchases in order to prevent slipping into loss.
The greater number of investors that bought ETH during this price range could cause a surge of margin calls or stop-loss order if Ethereum drops below $3,830.
To regain the momentum of the market, bulls will need to build a solid support above $4,050.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: crypto.news
