The Ethereum price is trading at $3,753 as of 4:00 est, down 5.3% over the last 24 hours.
The price of the largest altcoin by market capitalization is at risk of further declines as evidenced by on-chain data and technical indicators.
Over $1 billion ETH tokens hit exchanges in March
On-chain data shows that a large volume of Ether hit exchanges in March, as ETH holders realized over $7 billion in profits. Data from market intelligence firm Glassnode reveals that there have been spikes in the balance of Ether in exchanges, increasing by 210,478 ETH in March, worth about $0.98 billion.
ETH balance on exchanges. Source: Glassnode
More data from Glassnode shows that there have been spikes in whale addresses with ETH balance valued at $100,000 and more. Large holders have likely realized gains in March during Ethereum’s uptrend, as shown in the chart below.
Number of whale addresses with $100K of ETH or more. Source: Glassnode
On-chain metrics signal there is likely an increase in selling pressure on ETH and Ethereum price could crumble if holders continue realizing gains in the coming weeks and months.
Ether price at risk of losses to $3,200
ETH price hit its new year-to-date high at $4,095, on March 12. After the successful rollout of the Dencun upgrade on March 13, ETH holders embarked on profit-taking. Technical indicators reveal the altcoin is poised for a correction in Ethereum price if demand from traders fails to push ETH price higher.
The technical setup projects an approximately 15% correction in Ether’s price to $3,200, the area that provided support during the March 5 flash sell-off as shown in the daily chart below. Once Ethereum sweeps support at $3,200, the altcoin could make its way back to the range high at $3,800 and later revisit the swing high above $4,000.
Red bars have started appearing on the Moving Average Convergence Divergence (MACD) indicator, signalling potential risks of decline in Ethereum’s price.
TradingView Chart: ETH/USD
On the other hand, If Ethereum price fails to bounce off the $3,200 level, the smart contracts token could drop to support at the$3,000 psychological level. Such a move would imply over 20% correction in Ether’s price.