As investor confidence declined during the past several days, the level of FUD in the cryptocurrency market increased. This has been the case, especially for ETH after the significant sale by the Ethereum Foundation.
Particularly in relation to ETH, current dominant opinions suggested that it had just reached a local peak. As a result, this week’s downside forecasts are noticeably higher. Near the apex of a bullish trend, the Ethereum Foundation has previously sold a substantial quantity of ETH from its addresses. Recently, the Ethereum Foundation sold 15,000 ETH.
Although the foundation has historically added to selling pressure, a bull trend wasn’t usually at its peak. In a few instances, purchasing demand was stronger than selling pressure despite significant outflows from Ethereum Foundation addresses. In fact, a number of indicators showed that the market had a sizable amount of demand.
Addresses holding 0.01 ETH or more have recently reached a new ATH, indicating that retail traders were making purchases. A quick look at whale behavior showed that addresses holding 1000 or more ETH have also started to accumulate over the past two days, which may lead to the conjecture that they are providing exit liquidity.
The selling pressure over the preceding four weeks was primarily caused by the same whales. Recent information revealed that long-term investors were caving into FUD and profit-taking pressure. Recent Glassnode warnings state that ETH’s realized cap has recently surpassed a previous five-month high. This indicated that the majority of investors who sold their ETH did so at a profit.
The same results may be seen as evidence that the majority of recent buyers weren’t adding to the current sell pressure. That is to say, ETH was still in high demand even at the present price. This may possibly be the cause of the current limited negative impact.
Bears in ETH have been meeting resistance just above the $1800 price range. Lower prices could result from an increase in sell pressure weakening the same support. At the time of writing, the number of active deposits has increased, which emphasizes increased sell pressure.
Since May 5th, network growth has also drastically declined. This is most likely a result of weak market circumstances and decreased organic activity. The recent activity was significantly influenced by the recent memecoin frenzy.
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