Ethereum cools off as miners book profits en masse, prices still look primed to rebound
|- Ethereum price was rejected at its all-time high of $1,440 and has significantly cooled off.
- ETH miners have taken some profit in 2021 which could have contributed to the selling pressure.
Ethereum price reached $1,440 on Coinbase, a new all-time high before plummeting to a low of $1,234. It seems that ETH miners have been selling a lot in the past few weeks as their balances have dropped below 1 million ETH for the first time since the price hit $1,000.
Ethereum price faces healthy correction and it's poised for another leg up
Most of the selling pressure comes from ETH miners selling a significant amount of coins from January 3 until now. This can be concerning to the bulls in the short-term as miners could continue to panic sell if Ethereum price falls harder.
ETH Miners Balance
Additionally, the MVRV (30d) chart shows Ethereum is still close to the danger zone although this metric has cooled off with the last dip. The risk of accumulating ETH when the digital asset is close to the danger zone is certainly higher.
ETH MVRV (30d) chart
The recent sell-off from Ethereum’s all-time high happened right after the TD Sequential indicator presented a sell signal in the form of a green nine candlestick on the 4-hour chart. So far, ETH bulls have defended a crucial support level at $1,183. However, if this one breaks, bears will take control of the trend.
ETH/USD 4-hour chart
Ethereum has re-tested the previous resistance level of an ascending triangle pattern on the 4-hour chart. Considering that the SuperTrend has remained bullish, the digital asset could be aiming for a high of $1,670 after a rebound.
ETH Holders Distribution
It’s also important to note that despite miners are selling, whales aren’t. The number of large holders with 1,000,000 to 10,000,000 ETH coins hasn’t moved since January 15 and it has increased by two since January 6. Similarly, whales holding between 100,000 and 1,000,000 have accumulated even more ETH since the beginning of 2021.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.