• Ethereum holders’ risk appetite is declining alongside a shift in behavior of large wallet investors. 
  • Analysts identified divergences in the crypto market that temporarily paused the altcoin’s growth. 
  • Ethereum price could form lower highs against Bitcoin, wiping out its recent gains in a correction, according to experts. 

On-chain analysts at crypto intelligence tracker Santiment believe Ethereum holders have lost their risk appetite for the asset based on divergences in the market. Experts have predicted a correction in Ethereum against Bitcoin. 

Also read: Ethereum and altcoins gear up for alt season with this move in Bitcoin dominance

How market participants are losing their risk appetite for Ethereum

On-chain analysts at Santiment identified divergences in the crypto market that may have resulted in a temporary halt in Ethereum’s growth. Post the successful completion of Ethereum’s Shapella upgrade; the altcoin rallied to the $2,100 level before its recent pullback. 

Experts argue that market participants’ risk appetite is relatively low, and traders expect a drop in Ethereum price. Analysts conclude this based on the behavior of large wallet investors. 

One of the critical divergences noted by experts is between the trade volume and price of Ethereum, as seen in the chart below:

Transaction volume v. age consumed

Transaction volume v. age consumed 

These divergences are indicative of declining risk appetite among traders. 

What to expect from Ethereum price

Ethereum price experienced a pullback after climbing past resistance at $2,100. CrymeaCOIN, an expert analyst and trader, assumes that the Ethereum price will continue forming lower highs. 

ETH/BTC 1D price chart

ETH/BTC 1D price chart

Commenting on the ETH/BTC price chart, the analyst considers it an ideal spot for redistribution. A climb above the previous lower high at 0.072 could invalidate the bearish thesis for the altcoin.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Convex Finance extends gains after facing short squeeze

Convex Finance extends gains after facing short squeeze

Convex Finance (CVX), the DeFi token, extends its rally to double-digit gains and raises 26% on Monday, as seen on Binance. Data from Coinglass shows large volume liquidation of short positions, to the tune of $722,000. 

More Cryptocurrencies News

XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty

XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty

XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).  

More Ripple News

Quant price poised for a short-term sell-off amid potential early-holder selling spree

Quant price poised for a short-term sell-off amid potential early-holder selling spree

Quant (QNT) price could have a short-term downward pressure. Data from Lookonchain suggests that an early holder has deposited 118,008 QNT tokens worth $9.78 million into the Kraken exchange.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level

Bitcoin price is retesting its weekly resistance level of $67,147. Ethereum price finds support around $3,321, the price imbalance between $3,146 and $3,498. Ripple price faces rejection due to the key resistance level of $0.499.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis

BTC

ETH

XRP