Ethereum (ETH) price is unlikely to reach $4,000 anytime soon.
The price of Ethereum (ETH) has rebounded from a low of $3,100 this week, raising expectations for new highs for the altcoin.
However, the tendency of ETH investors to realize their profits can hinder this process.
The increase in the price of ethereum is guaranteed by limiting investors
Ethereum's price has risen to $3,642 at the time of writing, bringing investors back into the network. However, their actions are not consistent with expectations.
Transferring ETH from one address to another shows that the current price is higher than the previous price. This indicates that the supply held by such addresses is making a profit, which leads other investors to engage in the same business.
This is an indication of potential profit-taking, which will accelerate selling among ETH holders.
Read more: How to invest in Ethereum ETFs?
ETH's price drop is already at high risk as investors are offloading their assets into currency wallets. The net position change shows that 374,130 ETH worth more than $1.36 billion was sold in the last ten days. Over 52,030 ETH worth $190 million was sold by investors in the last 24 hours alone.
So as the gains run out, so will the selling, which could bring the rally to a halt soon.
ETH Price Prediction: Count up to $3,000
Ethereum price managed to recover the 50 and 100-day Exponential Moving Average (EMA). However, given the profit-taking sentiment, ETH may drop to find support at $3,336, which is in line with the 100-day EMA.
If this support is lost, $3,031 is the next support floor, which is against the 23.6% Fibonacci Retracement from $4,626 to $2,539.
On the other hand, ETH has already crossed the 50% Fibonacci Retracement. If it sees further growth and flips the 61.8% Fib line into support, it could invalidate the bearish study.
Read more: Ethereum ETF explained: what it is and how it works
The reason is that the latter bull run is considered a support floor and tends to reignite the rally. Marked at $3,830, ETH can go higher than this.
Disclaimer
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