Profit-Taking Pushes Ethereum (ETH) Into Overheated State Near Key Resistance
Despite briefly climbing over the weekend, Ethereum couldn’t keep up its momentum above $2,600. The altcoin dropped to $2,400 before staging another recovery and returning to $2,600.
New data now point to the possibility of a short-term pullback before a potential breakout materializes.
Cooling Period Before Breakout
Ethereum’s market is showing signs of overheating as it nears the $2.5K resistance level. There has been a surge in trading volume, which indicates intensified activity.
In fact, according to CryptoQuant’s latest report, the sharp uptick is attributed to profit-taking and the presence of resting supply at this key psychological level. As Ethereum enters an overheated state, analysts anticipate a short-term correction that could allow the market to cool before potential upside resumes.
“Consequently, Ethereum is expected to continue its consolidation phase until fresh demand emerges to drive a breakout above this resistance range in the mid-term.”
While short-term market signals suggest a cooling phase, long-term holders continue to accumulate the altcoin.
Long-Term Conviction
Ethereum’s presence on centralized exchanges has fallen to its lowest point in over a decade, driven by growing accumulation from institutional investors and large holders. As of May 19, Santiment reported that only 4.9% of the total ETH supply is held on trading venues, which represents a historic low. Over the past five years, 15.3 million ETH have been pulled from these platforms.
Meanwhile, CryptoRank.io revealed that more than 1 million ETH exited exchanges in the last month alone. This trend suggests that users are leaning toward holding ETH long-term rather than trading it. On-chain data confirms this behavior as it shows whales – wallets with over 10,000 ETH – have accumulated 450,000 coins since late April. By May 10, they collectively held 40.75 million ETH, the highest level since March.
Ethereum-linked investment products also saw a much-needed respite over the past week, recording inflows of $205 million during the period, amidst a renewed investor confidence following the Pectra upgrade. This brought its year-to-date total to $575 million.
The post Profit-Taking Pushes Ethereum (ETH) Into Overheated State Near Key Resistance appeared first on CryptoPotato.
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Ethereum Shows No Spike in Network Engagement Despite Successful Pectra Upgrade
Profit-Taking Pushes Ethereum (ETH) Into Overheated State Near Key Resistance
Despite briefly climbing over the weekend, Ethereum couldn’t keep up its momentum above $2,600. The altcoin dropped to $2,400 before staging another recovery and returning to $2,600.
New data now point to the possibility of a short-term pullback before a potential breakout materializes.
Cooling Period Before Breakout
Ethereum’s market is showing signs of overheating as it nears the $2.5K resistance level. There has been a surge in trading volume, which indicates intensified activity.
In fact, according to CryptoQuant’s latest report, the sharp uptick is attributed to profit-taking and the presence of resting supply at this key psychological level. As Ethereum enters an overheated state, analysts anticipate a short-term correction that could allow the market to cool before potential upside resumes.
“Consequently, Ethereum is expected to continue its consolidation phase until fresh demand emerges to drive a breakout above this resistance range in the mid-term.”
While short-term market signals suggest a cooling phase, long-term holders continue to accumulate the altcoin.
Long-Term Conviction
Ethereum’s presence on centralized exchanges has fallen to its lowest point in over a decade, driven by growing accumulation from institutional investors and large holders. As of May 19, Santiment reported that only 4.9% of the total ETH supply is held on trading venues, which represents a historic low. Over the past five years, 15.3 million ETH have been pulled from these platforms.
Meanwhile, CryptoRank.io revealed that more than 1 million ETH exited exchanges in the last month alone. This trend suggests that users are leaning toward holding ETH long-term rather than trading it. On-chain data confirms this behavior as it shows whales – wallets with over 10,000 ETH – have accumulated 450,000 coins since late April. By May 10, they collectively held 40.75 million ETH, the highest level since March.
Ethereum-linked investment products also saw a much-needed respite over the past week, recording inflows of $205 million during the period, amidst a renewed investor confidence following the Pectra upgrade. This brought its year-to-date total to $575 million.
The post Profit-Taking Pushes Ethereum (ETH) Into Overheated State Near Key Resistance appeared first on CryptoPotato.
Read More