Both Bitcoin and Ethereum have entered a phase of consolidation in the past few weeks , with both trying to break out above and below their respective medium-term price ranges.
Ethereum could continue its consolidation for the time being as a large holder with an enormous amount of ETH has emerged to sell.
This could prevent the cryptocurrency from moving higher in the short term – and it could signal that there are holders of the coin who are unwilling to let Ethereum go up right now.
Ethereum sees big sales wall
According to crypto trader „Cyrii“, there is an entity or group of traders who sell over 32,000 Ethereum – currently worth around $ 40,000,000 – on Bitfinex’s Ethereum / USD market.
This is by far the largest entry on the order book in this market.
Analyst Nik Yaremchuk comments that there is now still pressure to sell worth 25,000 Ethereum. As can be seen on the chart he shared, not a single trade was printed above the $ 1,250 level because the sell has not yet drawn the sell order.
It may be that this selling wall is related to a large claim that took place on Bitfinex’s margin book a few weeks ago.
As commented by crypto asset analyst „Light“, the $ 1.7 billion long opened on Bitfinex by an unknown entity has started to shrink in the past few days over what is known as a „claim“ .
A claim on Bitfinex is when a margin trade is converted to an exchange trade, which means that the cost of the borrowed capital is settled to the lender.
This means that the trader held a large ETH cash position and may now liquidate it.
Strong fundamentals
This selling pressure that exists in Ethereum markets comes despite the fact that the cryptocurrency has seen strong on-chain trends.
Spencer Noon, investor at crypto-focused venture firm Variant and an on-chain analyst, says there are a number of on-chain trends that suggest Ethereum ( See Buy Ethereum Guide ) „is at its all-time high.“ will blow up „.
These are:
Ethereum’s transaction fees are more than double that of Bitcoin, suggesting for some that it is one of the most useful, if not the most useful, crypto-asset and blockchain network.
The amount of value transferred to Ethereum via stablecoins, ETH itself, and other tokens surpasses Bitcoin and is well above that of other blockchains. This is largely due to the strength in the DeFi space and the rise of stablecoins, of which there is now over $ 20 billion worth on the Ethereum network, minus the algorithmic stablecoins.
Ethereum has an all-time high of daily active addresses, around 550,000 (90-day moving average).
Ethereum has seen a strong influx of capital locked into its native decentralized financial applications, with the total value locked into DeFi reaching over $ 25 billion.