Following the recent dip in Bitcoin’s price to $61k, Ethereum (ETH) also experienced a drop of around 2% in the past 24 hours. As of Thursday, October 10, during the mid-London trading session, ETH was trading at approximately $2,394. The large-cap altcoin has a fully diluted valuation of about $288 billion and an average daily trading volume of $14.2 billion. Over the past three months, Ethereum has shown signs of a potential reversal.
However, things may not be as straightforward as they seem. Recent reports indicate that the Chinese government plans to sell the remaining 542k Ether seized from the Plustoken Ponzi scam. This could potentially lead to additional selling pressure on the Ethereum market, as on-chain data shows that 15.7k ETH was recently moved to another wallet address, raising concerns about a possible sell-off.
In addition to the Chinese government’s actions, Ethereum has been facing significant selling pressure from decreased demand from institutional investors. The Ethereum Foundation has also sold a notable amount of ETH, further adding to the pressure. Furthermore, U.S. spot Ether ETFs have recorded over $561 million in net cash outflows since receiving regulatory approval.
Despite these challenges, from a technical standpoint, Ethereum’s price has been forming a symmetrical triangle pattern, which often signals a bullish breakout. An inverted head-and-shoulders (H&S) pattern is also emerging on the daily chart, along with a bullish divergence on the Relative Strength Index (RSI).
With over 28% of Ethereum’s circulating supply locked in staking to secure the network, ETH may be positioned for a bullish rebound before the end of the year. Many market analysts believe that this staked supply could limit selling pressure and support a price recovery in the coming months.
Considering the Chinese government’s actions and the broader market sentiment, it remains to be seen where Ethereum’s price is heading in the near future. Traders and investors will be closely monitoring the developments in the market to make informed decisions about their Ethereum holdings.