In an X post shared by Leon Waidmann, Head of Research at Onchain Foundation, he revealed that the Ethereum ecosystem is reaching a critical juncture; the amount of ETH held in smart contracts is nearing 40%. This milestone underscores the increasing scarcity of ETH, which remains underappreciated by the broader market.
The growing presence of ETH in smart contracts signals a significant shift in market dynamics. If demand for ETH rises even slightly, its price could experience explosive growth.
As per Lookonchain data, BlockTower Capital executed a substantial sale of 9,232 ETH, valued at approximately $24.8 million. This sale was processed through prominent trading platforms such as FalconX, Cumberland, Wintermute, and B2C2Group.
Despite this significant sale, Ethereum’s price has shown resilience. As at press time, ETH is trading at $2,641.89, marking a 3.52% increase over the last 24 hours. This upward movement indicates bullish, solid momentum. The price chart for ETH reveals a robust recovery from a recent dip. After falling to $2,553, ETH quickly rebounded, surpassing $2,750 before a minor retracement. Key levels in this chart are crucial for understanding market behaviour.
Ethereum Records Highest Year-to-Date Inflows Since 2021 Amid Market RecoveryEthereum’s support levels include $2,553, the lowest point in the past 24 hours, and $2,600, a psychological level where the price consolidated before rising. On the resistance front, $2,750 is the highest point recently achieved, while $2,700 marks a previous peak that could act as minor resistance. Market sentiment is currently positive, reflected by the price increase and a 47.14% rise in trading volume. This suggests a strong buying interest and a generally optimistic outlook among traders.
The daily Relative Strength Index (RSI) reads 40, suggesting that the market is in neutral trends. This could imply that a price correction might be imminent. Additionally, the 1-week Moving Average Convergence Divergence (MACD) is trading below the signal line, highlighting a period of bearish momentum.
