The world’s second-largest cryptocurrency Ethereum (ETH) continues to show weakness with its price tanking by more than 10% over the last week and falling to $1,650 levels. ETH looks weak on the technical chart hinting at the possibility of another 45% correction from the current levels.
Popular crypto analyst Ali Martinez writes: “Slipping beneath the $1,600 – $1,550 bracket for $ETH might set the stage for a significant 37% – 45% correction, targeting $1,000″.
The Ethereum network fundamentals are showing signs of lagging, indicating a bearish trend. The monthly average of active Ethereum ($ETH) addresses is below the annual average, suggesting limited on-chain activity. This is a common indicator of diminished network health and utilization.
Will Ethereum Futures ETF Save from the Possible Collapse?
After Thursday’s price crash last week, the ETH price saw a partial recovery as reports emerged that the U.S. Securities and Exchange Commission would greenlight the Ethereum futures ETF. The Volatility Shares Ether futures ETF are likely to go live by October 12 as per the current schedule.
But despite the optimistic Bloomberg report, on-chain data indicates that Ethereum whales have not embraced the bullish sentiment. In fact, they have continued to offload their holdings, even following a modest price recovery observed on Friday after a significant sell-off.
As illustrated below, the group of Ethereum whales possessing 10,000 to 100,000 coins has been consistently selling on the market since mid-July. Clearly, during the period from July 14 to August 18, they reduced their ETH holdings by 1.12 million coins. Notably, this reduction in whale holdings by 4% aligns with the 18% decrease in ETH price during the same timeframe from July 14 to August 18.
It’s difficult to say whether the tides would turn in favor of Ethereum investors anytime soon. However, the arrival of Ethereum Futures ETF could certainly lead to growing institutional participation in the long term.
For now, it will be interesting to see if ETH manages to sustain above $1,600 levels.