Ethereum Has Increased By 30% Over The Past Week Despite Traders Actively Taking Profits

Ethereum has successfully shown its investors that it has growth potential despite going through one of the strongest sell-offs in the asset’s history following the liquidations of large institutional investors like 3AC, Celsius and others.

Unruly market escapade

If we compare the outcome of the current rebound to the absolute bottom achieved back on June 18, Ethereum has increased in value by about 40% over the past eight days. A concentration of “purchase” orders totaling $900 is most likely what drove such rapid rise.

The majority of traders were actively searching for the ideal entry point into Ethereum, which was more than likely following the asset’s decline below $1,000 and subsequent encounter with stronger selling pressure that sent it plummeting to the $800 region.

Despite Ether’s market capitalization continuing to be below the level of June 1, investors were able to drive the price of the second-largest asset on the market back to $1,200 thanks to the vast amount of liquidations and a lack of liquidity.

Traders Ethereum continue to favor taking profits

As evidenced by their on-chain activity, it appears that the majority of ETH holders are actively taking profits, which puts additional pressure on the assets and prevents them from breaking local resistance levels. Unfortunately, the 30% price increase is not enough for traders and investors to keep supporting the asset.

Fortunately, Ethereum whale activity is still rather low, indicating that they are not the ones selling, and the asset still has a possibility to exhibit upward volatility given sales volume is still quite low.

Because there was no trading activity over the weekend, Ethereum’s price is consolidating around the $1,200 mark at the time of publication.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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