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Ethereum is flat at press time, moving within a small range of $400 with caps of $2,300 at the lower end and $2,800 as the upper limit. Even though investors are upbeat, expecting prices to rise in the near future, uncertainty continues to cloud the market.
Ethereum Finds Support at $2,300: Over 52 Million ETH Bought
The world’s second most valuable coin is bearish, shedding more than 50% from July’s high and unable to break through the local resistance at $3,500. As traders carefully monitor how price action pans out, one analyst picked out an interesting development in the market data.
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Citing information from IntoTheBlock on October 11, the analyst you notice that more than 52 million ETH was received by traders around the $2,300 level. Considering the number of coins in the hands of traders at this price, this position is a quick support.
Thus, if buyers have the upper hand, raising prices at this point, this level will strengthen the rise. If sellers double down, as has been the case in the past few months of trading, the chances of ETH falling below the Q3 2024 lows will be raised.
Right now, sentiment is bearish, as seen in a CoinMarketCap survey. More than 65% of ETH holders and traders expect the price to struggle in the short term.
Therefore, how prices react to local support will shape the short to medium term formation. The surge, lifting ETH above $2,800, will be crucial in the demand drive, providing much needed tails to hopeful traders.
USDT, USDC, and Stablecoin Market Cap Falling: Is Buying Power Diminishing?
While optimism is high, some related market data points to weakness. Over the past few weeks of trading, the market capitalization of stablecoins such as USDT and USDC has been falling. As of October 10, analyst notes down $780 million from the recent swing high, indicating a possible decline in purchasing power.
Generally, whenever USDC, USDT, and even DAI move to a centralized exchange, many users are willing to buy crypto assets, including ETH and BTC. However, if there is an exit or its market is shrinking, it may mean that many users are aware and carefully monitor the events before acting.
In general, many coins, including stablecoins, tend to find their way to moderate exchanges when there are concerns about market prospects. Such entry often precedes a general market correction.
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At the moment, the entry of ETH to a centralized exchange has not been chosen. However, what has happened is that many owners have been holding back. In the middle of this week, market data revealed that more than 34 million ETH remain locked up, with owners earning 3.3% APY.
Insert image from DALLE, chart from TradingView
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