The dump coincided with fears that Satoshi Nakamoto was selling his stash of BTC. With Nakamoto believed to wield a large amount of Bitcoin worth billions, it was no surprise the market fell quickly on this rumour becoming widespread.
While some are expecting a crypto market recovery because it was revealed that Nakamoto most likely isn’t selling his Bitcoin, analysts say Ethereum is running up against crucial levels of resistance, restricting upside.
Ethereum Still Has Key Resistances to Negotiate
On the day, Ethereum is up 4%, outpacing most cryptocurrencies in the top 10, though the rally is expected to end soon.
Ethereum is currently approaching heavy resistance with the weekly open and monthly open coming up.
The weekly open where ETH traded at the start of Monday is around $207, while the monthly open where ETH traded at the start of May is just short of $210. The cryptocurrency will need to decisively reclaim these levels to confirm upside.
Unfortunately, it’s unlikely to break through these resistance levels.
Cryptocurrency exchanges are holding (aggregate) more Ethereum than ever before, with addresses owned by platforms like Bitfinex and Binance holding ~18,000,000 ETH.
A well known data analyst remarked that this is a potentially bearish sign for Ethereum.