Et tu, Ether? A Price Plunge to Remember
Ethereum’s native currency, Ether (ETH), took a nosedive on the last trading day of Q2 2022, sliding nearly 5% down to $1,044. It turns out the markets aren’t overly fond of inflation or rising interest rates—who knew? This comes after a four-day losing streak where Ether decided to join the pity party with all the other riskier assets. Spoiler alert: it wasn’t pretty.
What’s the Deal with These Ascending Triangles?
In the world of crypto, when you hear someone mention an “ascending triangle,” it’s typically not a good sign—unless you’re at a party and someone mentions pizza. This bearish continuation pattern often hails from a sharp downtrend, and in Ether’s case, it might have just given the signal that it’s time to put on those life jackets. After breaking below its trendline on June 29, Ether’s price action was confirmed by a spike in trading volumes, signaling traders were cashing in their chips.
But Wait, There’s More!
With market analysts eyeballing a potential downside target of around $835, it seems like Ether is bound for a bit of a rollercoaster in Q3—predicted to be nearly 20% lower than its price just a month prior. Fasten your seatbelts!
Exchange Reserves Rising Like Doughnuts at a Weight Watchers Meeting
Now, here’s where it gets spicy: since May 2022, a whopping 1 million Ether tokens made their way onto exchanges, which sounds impressive until you realize it’s likely brewing up some selling pressure. What does that mean for the common investor? A few sleepless nights, perhaps?
Institutional Investors: The Party Poopers
Institutional investors aren’t exactly rolling in Ether either. Recent reports highlighted that Ether-focused investment products saw outflows of $136.9 million in June alone. In fact, about $450 million was pulled from these funds this year. Looks like ‘FOMO’ took a holiday this summer.
Sharks and Whales: The Dip Buyers
But for every grim tale, there’s a silver lining! Some of the big players, affectionately known as sharks and whales, decided to *buy the dip*—as in, they’ve snagged up an additional 1.1% of Ether’s supply during this -39% price drop since June 7. When these hefty wallets speak, sometimes it pays to listen!
Small Investors: Jumping on the Bandwagon
Even smaller investors aren’t sitting on their hands. There’s been a steady uptick in the number of addresses flaunting balances of 0.1, 1, and 10 ETH since last year, which suggests optimism—if not a hint of craziness, considering ETH’s current downturn.
The Bottom Line
As of now, Ether’s value has taken a considerable hit—35% this year alone—but amidst the doom and gloom, some are playing the long game. With the market constantly shifting, it’s more crucial than ever to do your research because let’s face it, no one wants to be the last person holding a hot potato.
