On September 11th, Ethereum (ETH), the second-largest cryptocurrency and the largest altcoin, experienced a drop of over 2%, falling to $1,540 levels and once again being under selling pressure. While Ethereum bulls struggle to keep the price above $1,600, the losses have not been recovered yet.
Following the drop in ETH price, blockchain analytics platform Santiment shared its latest analysis stating, “Ethereum dropped to $1,540, a price level not seen since March 12th. During this period, a significant amount of dormant ETH was moved from old wallet addresses. This decrease in the average age of ETH assets while the price is dropping is an indicator of capitulation, which usually signals a reversal of the trend.”
The technical outlook reveals that the key support levels to watch for in ETH are at $1,550 and $1,370. These levels are crucial support levels where a bounce in the price is more likely to occur. The price of the altcoin is currently trading at $1,579 with a market cap of $189 billion. However, if Bitcoin‘s price continues to decline, there is a possibility that Ethereum’s price could drop to $1,407.
On the other hand, if Bitcoin’s price recovers, it could exert upward pressure on ETH’s price and potentially turn the resistance level at $1,575 into a strong support zone. This could pave the way for Ethereum to surpass $1,800 and reach the significant psychological milestone of $2,000.
While Santiment’s data indicated an increase in the age metric consumed at the beginning of this month, the metric has remained relatively stable since then. Particularly in recent days, it has been observed that long-term investors have not contributed to significant selling activity. Although overall market sentiment is not positive, there is a decrease in the average coin age.
When all these factors come together, it reveals that the dominant trend in the market is a downtrend and ETH is likely not in a consolidation phase. Although there was a significant ETH outflow from crypto exchanges on August 23rd, there has not been any noteworthy outflow since then.