• ETH/USD needs to remain above $390 to continue growing.
  • The ETH long-term perspectives are still bullish.

At the time of writing, Ethereum (ETH) is trading at $400. The second-largest digital asset with the current market capitalization of $44.2 billion and an average daily trading volume of $15 billion has lost nearly 3% in the last 24 hours. However, it is still in a green zone on a week-to-week basis. 

A failure to move above the critical resistance of $420 triggered the downside correction and pushed the price to the channel support.  

ETH miners start dumping their coins

According to on-chain data provider Santiment, ETH miners have started dumping their coins after ETH reached a high of $421.5 on October 22. This emerging trend may be the first signal that the FOMO has started to fade out on the market. Historically, the asset price goes down when miners are beginning to move their coins to the exchanges as the selling pressure increases.

However, it should be noted that from the longer-term perspective, the miners' balance is still above the recent low reached at the beginning of September. Thus, the general trend remains positive, while the price may be vulnerable to the downside correction in the short-term.

ETH miners balance


Source: Santiment

Volatility ahead

Apart from that, Age Consumed printed several spikes in recent days. This indicator predicts the upcoming price volatility as it shows the number of coins changing addresses on a specific date, multiplied by the time since they last moved.

While the spikes are less pronounced than before, they may add credibility to the signals provided by the miners' balance indicator.

Ethereum Age Consumed indicator


Source: Santiment

ETH/USD rebounds from the channel support

From the technical point of view, a failure to clear a strong barrier created by $420 may signal that the upside momentum is fading away. The second-largest cryptocurrency rebounded from the channel support of $390. If it is broken, the sell-off may gain traction with the next focus on $360. A cluster of EMAs on the 12-hour chart, located on the approach to this support level, will make it a challenging target for the bears.

ETH/USD 12-hour chart

Meanwhile, the data on market positioning implies that there is a strong barrier located on the approach to $390, meaning that this support can effectively stop the correction and send the price back to $420. 

IntoTheBlock's data on In/Out of the Money Around Price (IOMAP) signals that there is strong support between the current price and $390 as there are nearly 1 million addresses holding over 11 million coins there. Once it is cleared, the sell-off will gain traction as there are no significant support levels below this area.

Ethereum: IOMAP data

Source: IntoTheBlock

On the bullish side, a sustainable move above $420 in this area is needed for the upside to gain traction. Once this barrier is out of the way, ETH can quickly retest $450 and $460, which is the yearly high. Considering that there are no major supply walls above the current price, this area should be an easy target for ETH bulls if the price remains above $390.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP