Yesterday, Bitcoin fell sharply after the news that FTX announced its current crypto holdings.
With this decline, BTC fell to $ 24,950, while altcoins also retreated.
Because the largest altcoin, Ethereum (ETH), also decreased by around 3%, falling to $ 1,530.
Although ETH bulls tried to take $ 1,600, they were unsuccessful and ETH is at $ 1,579 at the time of writing.
At this point, evaluating the decline in ETH, on-chain data provider Santiment stated that Ethereum dropped to $ 1,500 for the first time since March 12.
Santiment pointed out that a significant amount of ETH was moved during this period and stated that this situation is an indicator of capitulation and generally signals potential returns in the market.
“Ethereum dropped to $1,540 for the first time since March 12. This drop coincided with a large amount of dormant ETH being moved out of wallets.
“A continued decline in the average dollar value while prices are falling is a sign of capitulation and often signals potential reversals in the market.”
🐳 #Ethereum dropped to $1,540 for the first time since March 12th, and this coincided with large quantities of stagnant $ETH moving away from old wallets. A continued dip in mean $ age while prices drop is a capitulation sign, which foreshadows reversals. https://t.co/50jK2C7aLi pic.twitter.com/4RhtlVX3rr
— Santiment (@santimentfeed) September 12, 2023
Looking at the Ethereum chart, the downside support level for ETH is $1,440.
*This is not investment advice.
