Danger for Ethereum: This massive factor slows down the bull run
Both Bitcoin and Ethereum have entered a consolidation phase in recent weeks, with both trying to break out above and below their respective medium-term price ranges.
Ethereum could continue its consolidation for now, as a large holder has emerged with a huge amount of ETH to sell.
This could prevent the cryptocurrency from moving higher in the Bitcoin Circuit short term – and it could signal that there are holders of the coin who are not willing to let Ethereum go higher right now.
Ethereum sees big sell wall
According to crypto trader „Cyrii“, there is an entity or group of traders selling over 32,000 Ethereum – currently worth about $40,000,000 – on Bitfinex’s Ethereum/USD market.
This is by far the largest entry in the order book on this market.
Analyst Nik Yaremchuk comments that there is now still selling pressure worth 25,000 Ethereum. As seen in the chart he shared, not a single trade has been printed above the $1,250 level as selling has not yet pulled the sell order.
It may be that this wall of selling is related to a large call that took place on Bitfinex’s margin book a few weeks ago.
As commented by crypto asset analyst „Light“, the $1.7bn long opened on Bitfinex by an unknown entity has started to shrink in recent days, via something known as a „claim“.
A claim on Bitfinex is when a margin trade is converted into an exchange trade, meaning that the cost of the borrowed capital is settled to the lender.
This means that the trader has held a large spot ETH position and may now be liquidating it.
This selling pressure that’s been seen in the Ethereum markets comes despite the fact that the cryptocurrency has seen strong on-chain trends.
Spencer Noon, an investor at crypto-focused venture firm Variant and an on-chain analyst, says there are a number of on-chain trends that suggest Ethereum (Go to Buy Ethereum Guide) „will blow its all-time high“.
Ethereum’s transaction fees are more than double those of Bitcoin, suggesting to some that it is one of the most useful, if not the most useful, crypto asset and blockchain network.
The amount of value transferred on Ethereum via stablecoins, ETH itself and other tokens surpasses Bitcoin and is far above that of other blockchains. This is largely due to the strength in the DeFi space and the rise of stablecoins, of which there is now over $20 billion worth on the Ethereum network, minus algorithmic stablecoins.
Ethereum has an all-time high in daily active addresses, at around 550,000 (90-day moving average).
Ethereum has seen a strong influx of capital locked into its native decentralised financial applications, with the total value locked into DeFi reaching over $25 billion.