Key Takeaways:
- Following a 50% rise, ETH fell 0.7%, hinting at a brief consolidation phase.
- Trader Michaël van de Poppe highlights $3,400 as a key support and buy zone.
- On-chain data shows short-term holders are exiting, hinting at profit-taking behavior.
Ethereum (ETH) has declined by 0.7% over the past 24 hours, continuing its short-term pullback following a strong rally that observed over 50% returns in a month. However, according to a leading crypto trader, this pullback may reflect healthy market consolidation rather than underlying weakness.
Michaël van de Poppe, a prominent crypto trader and analyst, with nearly 800K followers on X, tweeted about ETH price action. Following its rise from below $2,500 to over $3,800, van de Poppe suggested that ETH has now entered a consolidation phase. The recent drop is seen as a “liquidity sweep”, a flush of leveraged long positions, rather than a full-blown trend reversal.
He sees $3,400 as a key support level and calls it a “big buy opportunity” if ETH drops further. On the contrary, if the market stabilizes, ETH could make another push toward its recent highs near $3,800, acting as a key resistance level.
According to data from Santiment, several short-term ETH holders ranging between (60-90 days) and (7-30 days) have shown strong signs of selling based on on-chain data. Based on how long people held Ethereum tokens, the Spent Tokens Age Band displays the number of coins being sold or spent. For example, from the peak of 64.8K ETH on July 23 to 18K ETH, we saw a significant decline in the Spent Coins Age Band for 60-90 days. We saw a similar decline from 92.6K ETH to 59.8K ETH on the 7-30 day chart.
Ethereum’s recent decline appears to be part of a healthy market consolidation rather than a bearish reversal, according to van de Poppe. He sees $3,400 as a buying opportunity, as ETH could rebound if sentiment stabilizes. However, rising sell pressure from short-term holders signals that caution may still be observed in the near term.
