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Exchanges Hold More Ethereum Than Ever, ETH Price Under Threat

05/17/2020
exchanges hold

It seems that exchanges hold more Ethereum than ever before while Ethereum outperforms any other multi-billion dollar asset over the past few weeks. The cryptocurrency rallied to $226 and gained more than 150% but its price could be under threat, as we are reading further in the Ethereum latest news.

With this move, the investors became quite bullish on the cryptocurrency and the data from Bitfinex even indicated that there are more than 1,619,876 long contracts on Ethereum. This is three times more of what the count of long positions was at the start of this year, and nine times higher than it was seen at the peak of the 2018 bull market. Despite the optimism of the investors, some analysts warn that a bearish action could start for ETH in the short-term. According to one popular crypto analyst, the number of ETH that the exchanges hold is at an all-time high reaching 18 million coins.

ETH Chart

This trend could turn bearish for the value of Ethereum which the analyst referenced how it indicates an increased propensity by the investors to start selling this cryptocurrency. According to the bearish on-chain trend, the analysts warned that Ethereum’s chart is building a downside trend. ETH even lost a key level of support that has held four separate times over the past three weeks which means a larger correction could come.

Ethereum price chart

Other investors were even more skeptical on ETH saying that a drop lower than $88 is possible. One trader even predicted that XRP could fall to $0.13 and he recently said that Ethereum is a textbook corrective pattern that could bring the price of the asset to $50. The outlook seems dark but the cryptocurrency could be helped by the positive fundamentals. The social media platform Reddit confirmed that they will be hosting the community points on the Ethereum Rinkeby test net.

chart

An analysis of the news by Adam Cochran indicated that the new tokens system will expose millions to Ethereum. The project continued to the worth on the ETH 2.0 upgrade to which the analysts expect to increase the usability of the blockchain:

 “Today, Reddit introduced about 20M new users to cryptocurrency in a matter of seconds. That’s how many users visit Reddit’s /r/Cryptocurrency and /r/FortniteBR on any given month.”

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