The cryptocurrency market is currently encountering several challenges, particularly with Ethereum (ETH) facing a substantial decline. As the second-largest cryptocurrency in the market, ETH has shown significant resistance in recent weeks, indicating a lack of strong recovery potential in its price.

According to renowned crypto analyst Ali Martinez, there has been a consistent decrease in the holdings of some of the largest Ethereum whales, who possess over 10,000 ETH. This persistent selling pressure from these significant investors has resulted in a 26% drop in the price of ETH over the past 30 days. Consequently, the year-to-date gains for ETH have diminished to just 55%, positioning it as one of the less performing tokens in the given timeframe.

The continued departure of these influential investors has played a substantial role in keeping ETH at the lower end of its trading range over the past seven months. The bearish sentiment surrounding ETH has further been reinforced by the TD Sequential indicator, which has indicated a potential sell-off on the cryptocurrency’s hourly chart, potentially exacerbating the existing downward trend.

Looking forward, Martinez has identified key support levels that may come into play should the price of ETH continue to decline. He highlighted a crucial support zone between $2,300 and $2,380, where over 1.62 million addresses have purchased more than 50 million ETH. Preserving this level could be pivotal for bulls to prevent another steep crash similar to the one witnessed earlier this month, which saw the price drop to $2,100, a level last seen in February.

Despite these negative indicators, market researcher Leon Waidmann has pointed out a positive development that may indicate a potential upward turn for Ethereum. Waidmann noted in a recent social media post that, for the first time, the balance of ETH on cryptocurrency exchanges has fallen below 10%. This milestone is significant, with the amount of Ethereum held on exchanges now lower than that of Bitcoin (BTC). According to Waidmann, this shift could indicate a withdrawal from short-term speculation and a movement toward long-term holding among ETH investors.

However, the future trajectory of ETH’s price remains uncertain, and whether the bulls or bears will assume control is yet to be determined. Ultimately, the current phase of consolidation will be disrupted by the next short-term movement for the token.

At the time of writing, ETH is trading at $2,580.

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