Ethereum hasn’t had a chance to recover ever since it began declining in November 2021. However, its investors haven’t lost the hope of witnessing a rally.
Notably, a possible recovery might not bring enough improvement for the king altcoin, given its investors’ recent actions.
Trading at $1155, Ethereum’s 13.15% rise from 24 hours ago seems to have been triggered, enough to bring about a change in the active trend. The altcoin king which fell below the $1k mark over the week is now finding support in the broader market’s bullish cues.
Now, as the uptrend finally seems to begin after almost two months, ETH could prepare to rise up to $2k marking a 73.7% rally. But for the same to happen, the conviction must return to the market so that even the most minute growth can be sustained.
Ethereum price action | Source: TradingView – AMBCrypto
As per the Liveliness of the market, for the last two months, Ethereum has been subjected to higher liquidations than accumulation. Primarily because this is truly a crash and not another “buy the dip” scenario as it was between November and January.
Ethereum liveliness | Source: Glassnode – AMBCrypto
Interestingly, in the same 24 hours of the rise, ETH investors sold out 250k ETH worth over $287 million. Although this isn’t a lot for a coin whose market cap is $140 billion, it speaks to investors changing motives.
Ethereum investors’ selling | Source: Santiment – AMBCrypto
Booking profits and escaping losses is the only concern for these people at the moment.
For the same reason, recent Ethereum transactions at the hands of ETH holders have been purely vanilla as opposed to their distribution a week ago.
While ETH transfers do hold the most concentration when it comes to on-chain transactions, for a while since May, NFT transactions became the second most common transaction type.
The same changed a week ago. Thus, verifying investors’ changing intent.
Ethereum transaction type | Source: Glassnode – AMBCrypto
Hence, for Ethereum to climb back to $2k, the aforementioned developments need to turn bullish, or else investors might have to wait for a long for the 73% rally.