Key Takeaways
Ethereum has retraced by more than 20% over the past four days.
Meanwhile, nearly 193,000 Ethereum has been sent to crypto exchanges.
Further selling pressure could trigger a correction toward $600.
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Ethereum looks like it’s at risk of a steep correction as crypto’s rocky June draws to a close. Market participants are rushing to exchanges to exit their positions, while Ethereum is sitting on little to no support.
Ethereum Faces Lower Lows
Ethereum looks primed for a significant price movement as selling pressure accelerates.
The number two cryptocurrency has suffered from a price drop of over 20% over the past four days. It was trading at a local high of $1,280 on Jun. 26 before dipping as low as $1,015. Notably, Ethereum broke below the crucial $1,000 level on Jun. 18, and the losses could extend further as downward pressure appears to be on the rise.
On-chain data from Glassnode shows that the number of Ethereum held on known cryptocurrency exchange wallets has significantly increased. Nearly 193,000 ETH worth roughly $200 million has flowed into trading platforms since Jun. 26. The spike in the balance held on exchanges coincides with the recent downward price action, hinting at a sell-off.
Source: Glassnode
Moreover, transaction history shows that Ethereum lacks the demand it needs to prevent further losses. Ethereum’s next significant support level is at $600, where 12.8 million addresses hold 9.55 million ETH. This interest zone is crucial as market participants may sell their holdings in a bid to prevent their investments from going “Out of the Money.”
Source: IntoTheBlock
The most critical resistance level for Ethereum is currently at $1,120, where 468,000 addresses have previously purchased over 7 million ETH. A daily candlestick close above this hurdle could invalidate the pessimistic outlook, potentially leading to a surge to $1,300 or even $1,500.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
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