Ethereum’s price continues to face significant pressure, yet there are emerging signs of potential movement.
The total amount of ETH held in accumulation addresses has reached an impressive 19.2 million, indicating a strong interest among investors. Additionally, the latest trading day for ETFs recorded an inflow of $48 million, highlighting ongoing market activity.
The price of #Ethereum remains under significant pressure, but there are signs of movement.
The amount of $ETH in accumulation addresses has reached 19.2 million #ETH, and the last day of ETF trading saw an inflow of $48 million. pic.twitter.com/Yn2OlWqW6u
— CryptoQuant.com (@cryptoquant_com) October 21, 2024
However, Ethereum’s current market dynamics also raise concerns. The futures market is now considered overheated, with leverage at concerning levels, leaving Ethereum susceptible to a potential short-squeeze event. Key resistance is noted at the $2,700 mark, where many traders are closely monitoring price action.
Ethereum Faces Short-Squeeze Risk: Rising Leverage and Key Resistance at $2.7K
“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event.” – By @ShayanBTC7
https://t.co/LBeV3Lis4d pic.twitter.com/wUZ2sEowmW
— CryptoQuant.com (@cryptoquant_com) October 22, 2024
On the positive side, the Ethereum network boasts over 5 million active addresses across both the mainnet and leading Layer 2 networks. This impressive figure significantly surpasses any other Layer 1 asset, showcasing Ethereum’s robust engagement and adoption in the crypto ecosystem.
There are now over 5 million active $ETH addresses across the Ethereum mainnet and leading L2 networks, outpacing any other Layer 1 asset by a significant margin. pic.twitter.com/W6JaauNvhV
— IntoTheBlock (@intotheblock) October 21, 2024
Ethereum Spot ETFs Recorded Net Outflow
Despite these encouraging developments, the Ethereum spot ETF experienced a net outflow of $20.8 million on October 21. This outflow may reflect cautious sentiment among investors as they navigate the current volatility in the market.
On October 21, Bitcoin spot ETF had a total net inflow of $294 million, continuing its net inflow for 7 consecutive days. BlackRock ETF IBIT had an inflow of $329 million. Ethereum spot ETF had a total net outflow of $20.7993 million. https://t.co/59u0BnEqLG pic.twitter.com/v5gUtw4Nz2
— Wu Blockchain (@WuBlockchain) October 22, 2024
As Ethereum grapples with both pressure and opportunities, market participants remain vigilant. The interplay of accumulation trends, rising leverage, and short-squeeze potential will be crucial in determining Ethereum’s trajectory in the coming weeks. Investors will be closely watching how these factors influence price movements and overall market sentiment.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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