Over 52 Million ETH Bought At $2,300, Will Ethereum Bulls Defend This Support?

NewsBTC
Updated
Mitrade
coverImg
Source: DepositPhotos

Ethereum is flat at press time, moving inside a narrow $400 range with caps at $2,300 on the lower end and $2,800 as the upper limit. Even though investors are upbeat, expecting prices to soar in the coming sessions, uncertainty continues to engulf the market.


Ethereum Finds Support At $2,300: Over 52 Million ETH Bought


The second world’s most valuable coin is bearish, dumping by over 50% from July highs and unable to break the local resistance at $3,500. As traders closely monitor how price action pans out, one analyst has picked an interesting development from market data.


Citing IntoTheBlock data on October 11, the analyst observes that over 52 million ETH has been acquired by traders at around the $2,300 level. Considering the amount of coins in the hands of traders at this price, this zone is the immediate support.

Strong support at $2,300 | Source: @ali_charts via X

As such, if buyers have the upper hand, lifting prices from this point, this level will anchor the uptrend. If sellers double down, as has been the case in the past few trading months, the probability of ETH dropping below Q3 2024 lows will be elevated.


Presently, the sentiment is bearish, as seen in the CoinMarketCap poll. Over 65% of ETH holders and traders expect prices to struggle in the short term.

Ethereum price trending sideways on the daily chart | Source: ETHUSDT on Binance, TradingView

Therefore, how prices react at the local support will shape the short to medium-term formation. A surge, lifting ETH above $2,800, will be crucial in driving demand, providing the much-needed tailwinds for optimistic traders.


USDT, USDC, And Stablecoin Market Cap Falling: Is Buying Power Dwindling?


Although optimism is high, other related market data points to weakness. Over the past few trading weeks, the market capitalization of stablecoins like USDT and USDC has been falling. As of October 10, the analyst notes it was down $780 million from recent swing highs, pointing to a possible drop in buying power.

Stablecoin market cap falling | Source: @ali_charts via X

Usually, whenever USDC, USDT, and even DAI move to centralized exchanges, more users are keen on buying crypto assets, including ETH and BTC. However, if there is an outflow or its market cap dwindles, it may mean that more users are cautious and closely monitor events before committing.


Typically, more coins, including stablecoins, tend to find their way to centralized exchanges when there are concerns about market prospects. Such inflows tend to precede a market-wide correction.


For now, inflows of ETH to centralized exchanges have not been picked. However, what’s been happening is that more holders have been staking. By mid this week, market data revealed that over 34 million ETH remain locked, earning holders a 3.3% APY.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Ethereum Price Turns Red: Is This a Temporary Dip?It tested the $2,420 support zone. A low was formed at $2,411 and the price is now attempting to recover. There was a move above the $2,450 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,582 swing high to the $2,411 low.
Author  NewsBTC
5 hours ago
It tested the $2,420 support zone. A low was formed at $2,411 and the price is now attempting to recover. There was a move above the $2,450 resistance zone. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,582 swing high to the $2,411 low.
placeholder
Ethereum Price Consolidates Gains: Is It Ready for Another Push?Ethereum price started a fresh increase above the $2,600 resistance. ETH is consolidating gains and might aim for a move above the $2,720 resistance. Ethereum started a decent increase above the
Author  NewsBTC
Oct 31, Thu
Ethereum price started a fresh increase above the $2,600 resistance. ETH is consolidating gains and might aim for a move above the $2,720 resistance. Ethereum started a decent increase above the
placeholder
Ethereum Co-Founder Buterin Introduces ‘The Splurge’ UpgradeEthereum co-founder Vitalik Buterin has unveiled “The Splurge,” a comprehensive set of protocol upgrades aimed at addressing a variety of challenges within the Ethereum ecosystem. I
Author  Bitcoinist
Oct 30, Wed
Ethereum co-founder Vitalik Buterin has unveiled “The Splurge,” a comprehensive set of protocol upgrades aimed at addressing a variety of challenges within the Ethereum ecosystem. I
placeholder
Vitalik Buterin Defends Ethereum Foundation’s Sales Amid Community CriticismEthereum co-founder Vitalik Buterin recently addressed why the Ethereum Foundation, the non-profit supporting the blockchain network, opts to sell its ETH holdings rather than stake them.
Author  Beincrypto
Oct 28, Mon
Ethereum co-founder Vitalik Buterin recently addressed why the Ethereum Foundation, the non-profit supporting the blockchain network, opts to sell its ETH holdings rather than stake them.
placeholder
Ethereum Price Lacks Traction: Can It Overcome The Slowdown?Ethereum price extended losses and tested the $2,380 support zone. ETH is recovering losses and struggling to gain pace for a move above the $2,5250 level.
Author  NewsBTC
Oct 28, Mon
Ethereum price extended losses and tested the $2,380 support zone. ETH is recovering losses and struggling to gain pace for a move above the $2,5250 level.