Ethereum (ETH) has broken above the $2,579 resistance. This has triggered a wave of older, less active coins starting to change hands. Many of these coins appear to be heading to exchanges, as evidenced by the sharp increase in netflow on these platforms.
This could put selling pressure on the price, putting ETH at risk of losing its recent gains. This analysis explores what holders should expect.
Long-term Ethereum holders aim for profit
The overall market sentiment has shifted from neutral to greed as trading activity begins to pick up momentum. In 24 hours, the price of ETH has risen by 4%.
This surge in prices has encouraged many dormant holders to become active, as evidenced by the spike in ETH’s age consumed. Santiment data shows that this metric, which tracks the movement of long-held coins, spiked by more than 400% on Monday (14), reaching 66.42 million — the highest value since October 4.
Ethereum consumed age. Source: Santiment
When an asset’s age consumption spikes, it indicates that many previously dormant coins or tokens have recently been moved or traded. Typically, when dormant coins re-enter circulation, it indicates renewed activity from long-term holders.
However, the accompanying increase in Ethereum netflow volume suggests that a substantial portion of these revived coins were deposited on exchanges. BeinCrypto’s assessment of ETH exchange activity reveals that on Monday, 51,881 coins, valued at over $135 million based on current market prices, were transferred to cryptocurrency exchanges.
When an asset witnesses an increase in this metric, it means more investors are selling than buying.
Net Ethereum transfers to exchanges. Source: Glassnode
Read more: Ethereum ETFs – Understand what they are and how they work
Price prediction
Ethereum price could drop towards the resistance at $2,579 if the selling activity gains momentum. If the level fails to hold as support, the altcoin’s price could drop further towards the support formed at $2,320, representing a 10% drop from its current value of $2,616.
Ethereum Price Analysis. Source: TradingView
However, if the selling pressure weakens and new demand enters the market, the above bearish projection is invalidated. As such, Ethereum price will extend its gains and move higher towards the next major resistance at $3,102.
The article Ethereum (ETH) Forecast: How Can the Price Behave Today? was first seen on BeInCrypto Brazil.
