Ethereum (ETH) has been among the altcoins that saw most consistent gains over the last 10 days, gaining over 25%.
Ethereum bulls, who successfully raised prices from the £1,120 mark to £1,360, were in control of the price. Despite the price of the top altcoin having gone up, the resistance at £1,380 stopped the upward trend.
Following a spike on October 10, the number of active Ethereum addresses continued to drop, making lower lows on the daily chart.
Investors’ market confidence is falling as shown by declining active addresses. Furthermore, another concerning development is the recent 7-month low of 1,158 addresses for the number addresses holding 10,000 or more ETH.
This could imply that whales sold off some of their holdings after the last push as ETH’s price movement faltered.
Additionally, data shows that price rise was prompted by whales’ deposits on the exchange. It’s interesting to note that as ETH prices increased, exchange inflow increased significantly.
The current surge may look like a planned pumping event from the bear market as part of an exit strategy before a further decline.
The percentage of ETH addresses that are profitable (7d MA) reached a 1-month high of 56.565% on October 31. Because there are so many addresses making profits, traders can be tempted to take advantage of the market.
Nevertheless, the NVT Signal (7d MA) also touched 1,604.988, a one-month high. Although a strong NVT Signal suggests that investors are paying a premium for the asset, it frequently corresponds with local market tops.
The same could imply that selling opportunities exist amid the height of enthusiasm in the event of NVT making higher peaks during bearish over-extensions.
At the time of writing, the price of ETH was £1,360. According to IntoTheBlock’s In/Out of Money Indicator, further sell-offs may occur if the price drops below £1,340, the level at which 1.17 million addresses own 5.38 million ETH.
ETH’s price action appears to be at a turning point, but if the bearish thesis is invalidated, the price may rise to the bullish target of £1,380.