Kaiser55
vip

Glassnode market analyst Prof Chaine indicated that the market for ether (ETH), Ethereum's native cryptocurrency, "is approaching a state of saturation that is difficult to maintain."



Currently, more than 90% of the ETH supply is in profit, explains Prof Chaine. This high proportion suggests that many investors might be motivated to sell their holdings to secure substantial profits.

Historically, when there is such a high percentage of supply in profit, there has been a trend of corrections in price. This is due to the fact that a strong selling scenario, outpacing the buying scenario, exerts downward pressure on the price.

According to Prof Chaine, something similar happened in August 2020, causing a correction and then an increase in prices, as the chart below shows. Therefore, if this scenario repeats itself, ETH could have downward pressure.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)