0

Ethereum Price Prediction: ETH Holders Sell Off Near $1,200

3 Min Read
Last Updated March 27th 2021

Daily Ethereum ETH Technical Analysis

  • Ethereum sits on a strong support zone at $1,125.
  • On-chain data shows an increasing amount of large transactions ($100,000).

Ethereum reached $1,200 this Thursday en route to its all-time high levels ($1,432.88). However, it seems like the holders have chosen this psychological level as the ideal point for selling off their tokens. In fact, this hypothesis is further corroborated by the “Number of Large Transactions” chart from IntoTheBlock.

ethereum transactions chart 010821

Image: IntoTheBlock

This chart tracks the number of large transactions (>$100,000) that have been conducted in the protocol. As you can see, this Thursday, the number of these transactions skyrocketed to 16,200. This is very significant because, since Jan 2020, the number of these large transactions never exceeded 7,500.

Another reason is that this shows that the whales/institutions, aka entities that can actually afford these transactions, have been selling off their coins.

 

Ethereum Faces Sell-Off

This was the first bearish session that Ethereum had after six consecutive bullish days. The buyers have chosen to sell-off at the $1,200 psychological level, but it looks like a temporary price correction. The moving average convergence/divergence (MACD) shows that the overall market momentum is presently bullish.

eth/usd daily chart 010821

Image: ETH/USD daily chart

Looking at IntoTheBlock’s IOMAP, we can see that the $1,200 zone is a very strong barrier, wherein 380,000 addresses had purchased 2.4 million Ether tokens. If the price breaks above this level, they should easily $1,350.

eth/usd volume chart 010821

Image: IntoTheBlock

On the downside, there is a healthy support level at $1,125, wherein 175,00 addresses had previously purchased 1.85 million Ether tokens. Looking at the 4-hour chart, we can see that the latest bearish price action has dipped the RSI back into the neutral zone.

eth/usd 4-hour chart 010821

Image: ETH/USD 4-hour chart

 

Ethereum Is Now One Of The Top 100 Assets In The World 

Ethereum’s recent price action has propelled the asset onto a list of the top 100 traded assets by market cap, according to Companiesmarketcap.com. Ether (ETH) is positioned in the 88th spot, between Bristol-Myers Squibb at 89th spot and Anheuser-Busch at 87. 

ETH crossed $1200 recently and has been up 62% in 2021 alone. The asset’s gains in this year translate into a $53 billion increase in Ethereum’s market cap. This is enough for it to overtake the market cap of several massive conglomerates such as Wells Fargo, AstraZeneca, Philip Morris, Morgan Stanley and Citigroup. 

ethereum assets chart 010821

The only other cryptocurrency in this list is Bitcoin. The flagship coin has surpassed Visa, Berkshire Hathaway, Alibaba, and Tencent to move up to the 10th spot. With an estimated market cap of $12.19 trillion, Gold sits atop the list by a margin of $10 trillion. 

The calculation of market capitalization is traditionally determined by multiplying a stock's price by its total number of shares. However, in the case of cryptocurrencies, the market cap is determined by multiplying the price of a coin by its total supply. Precious metal market caps are measured by multiplying their price by the total tonnage of supply. Hence, the numbers are only estimates. 

 

Key Price Levels To Watch For ETH

The $1,125 support barrier will be key in the price kicking back into gear. Similarly, when the price gets back to the $1,200 zone, it will be interesting to see how the holders behave at that level.

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.