Ethereum (ETH) experienced a 7% decline on Thursday morning following the Federal Reserve’s decision on interest rates. The latest announcement from the Fed, which included indications of potential rate hikes in the future, had a negative impact on global markets, including cryptocurrencies like BTC and ETH.
Weak Hands Among Ethereum Long-Term Investors
Ethereum has seen significant outflows from long-term investors during this market turbulence. Santiment’s Mean Coin Age data reveals a network-wide sell-off among these investors.
Mean Coin Age measures the average number of days that coins in circulation have remained in their current addresses, giving insight into the sentiment of long-term investors. The data shows that ETH Mean Coin Age dropped by 9% from 37.87 to 34.56 between June 4 and June 15.
A significant decrease in Mean Coin Age within a short period indicates that long-held coins are being sold. This can negatively impact ETH prices, as it may signal a widespread sell-off among strategic investors.
If the selling continues and demand for ETH remains insufficient, the bearish trend may persist in the weeks to come.
Negative Sentiment in the General Market
Over the past week, the general market sentiment towards ETH has slipped into a critically negative zone. Santiment’s Weighted Sentiment chart compares positive and negative mentions of an asset in trending media opinions.
According to the chart, ETH Weighted Sentiment has remained below the critical 2.0 zone since June 9.
In simple terms, the number of negative mentions outweighs the positive ones, indicating that bears now dominate the media narrative.
If this trend continues, it could lead a significant portion of prospective ETH investors to adopt a bearish stance in the coming days.
In summary, the current network-wide sell-offs and extremely negative market sentiment may potentially drive ETH prices lower.
Price Prediction: ETH Could Drop to $1,500
Based on the aforementioned factors, it is likely that ETH will drop below $1,500 in the coming weeks. However, the bears will need to overcome initial support at $1,600.
At that level, In/Out of Money Around Price data reveals a cluster of 2.3 million investors who bought 2.6 million ETH at an average price of $1,607.
If the bears can breach this support zone, ETH may decline towards $1,500.
However, if the bulls can reverse this negative trend and push ETH above $1,700 again, they will face resistance around the average price of $1,704. The chart above indicates that a cluster of 1.34 million investors holding 2.33 million ETH may sell around that price.
If the bulls can break through this resistance, ETH may rise further towards $1,900.
Disclaimer
In accordance with the Trust Project guidelines, this article is for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to providing accurate and unbiased reporting, but market conditions can change rapidly. Always conduct your own research and consult with a professional before making any financial decisions.
