While Ethereum Price Tries To Recover, ETH Addresses Plunge! How Will This Impact ETH Price

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Ethereum investors have been in the red for the most of 2022.  This is because Bitcoin continues to fall below critical levels. Prior to the weekend, the price had dropped to its lowest level in almost nine months. The move has triggered another sell-off for Ethereum price and the market.

Those who own Ethereum tokens have failed to gain massive profit this year, with year-to-date losses of 50%. Indeed, according to Glassnode statistics, the number of lost addresses has been steadily increasing since the beginning of 2022, peaking at 34.9 million on May 30.

Ethereum Short-term Prospects Indications

Despite a minor weekend rebound, the above-mentioned statistic reached new highs. On Monday morning, the comeback continued, with Ethereum price fighting crawling back to $1,900. So, what does this mean for the company’s short-term prospects?

Well, the statistic indicates selling pressure easing in the future. The idea was that the losing addresses would sit tight and HODL their Ether, with a hope of break even rather than lose money on their investment.

Ethereum price is expected to hit the $1,900 area without too many setbacks, as bears are predicted to stay passive. On the 4-hour chart, the candles are surging above their 50-SMA (yellow), and the RSI also topped 50, indicating that ETH was open to additional positive price activity.

However, because the daily 20-SMA (not displayed) provides a considerable obstacle to expansion, the upper move is restricted to $2,000 only. Since April 6, ETH has failed to close above its MA, allowing bears to retaliate after many minor rebounds.

Furthermore, if ETH closes above the $2,100 level, ITB predicts that 3.4 million addresses will convert to ‘green.’ If investors aren’t comfortable with HODLing in the face of market uncertainty, this might lead to profit-taking.

Final Thoughts

In other words, negative pressure looks to remain weak in the coming days. The buy-evident side’s dominance bolstered ETH’s short-term upward trend.

Nevertheless, it is best to stay away from trading when there is high volatility. The crypto market is currently in a negative phase, and advances for most currencies, including Ethereum, are expected to be restricted to big resistance levels.