After going all-out over the past few days, Ethereum might have exhausted its energy. It briefly reached $1,675 in just a couple of hours.
Analysts shared their views on the fact that altcoin alpha is now in the anticipated correction phase. They said the crypto must maintain its $1,500 support zone to prevent another bullish rally.
Let’s take a quick glance at how Ether has performed so far this month:
- Ethereum lost the critical $1,500 support mark
- The ETH fell 6.3% during the last 7 days
- If ETH keeps falling, 3 million addresses that hold 9 million ETH may suffer massive losses
However, data are available from CoingeckoETH claims that it failed to achieve this as the price of ETH has fallen by 7% in 24 hours. As of press time it trades at $1,480. It’s now just $120 away from the critical support area it needs to continue fuelling another rally.
The problem doesn’t end there for the second largest cryptocurrency in terms of market capitalization as more losses could be underway for Bitcoin’s top rival.
Ethereum Failed To Test $1.700 Territory
The digital currency surged during the past few days and many investors, experts, believed that it would soon reach the $1,700 mark, which has been elusive for quite some while.
However, Ethereum prices dropped shortly after hitting $1,670. – Downward correctionIt dropped to $1,620 before losing even more to make it trade for $1,600.
Investors waited patiently to see the crypto take another plunge, and it plummeted to $1501.
As ETH enters a consolidation stage below $1,500, the resistance level for ETH was determined at $1,605. A bearish line was seen across the chart. This indicates that Ethereum may have difficulty recovering immediately after this price correction.
The appearances of bears suggest that they are Already in control againThe cryptocurrency lost all its gains after rallying with Bitcoin at the end of October and in the early days of November.
3 Million addresses are in Trouble
It can be attributed that altcoin has failed to retain its support zone at $1,550. This is due to a lack of buyer pressure which has led to prices falling.
But more than just experiencing a massive decline, more trouble will come for ETH and its holders if bulls can’t regain their advantage anytime soon.
Recent transaction data shows that there are 3 Million addresses holding 9 million Ethereum tokens that will be effectively be put under the “Out of the Money Territory” if the asset fails to bounce back any time soon.
Many investors are certain to suffer huge losses if the cryptocurrency takes another step down memory lane, and recalls its past performances.
Featured image from Investing.com, Chart: TradingView.com| Featured image from Investing.com, Chart: TradingView.com