Ethereum could be on the brink of a major crash. New data suggests that Ethereum investors might trigger what would be its worst sell-off. Glassnode has shared data that about 80% of Ethereum supply is in profit. This is only the third time this has happened with the last two times being followed by a bearish trend.
If a majority of investors begin to sell, Ethereum could in a matter of days crash. And with prices faltering at the $250 region this could be sooner than expected.
The percent of #ETH supply in profit is hovering at 80%.
It is the third attempt within a year to break this level.
Last time the #Ethereum‘s supply in profit was significantly above 80%, $ETH was priced at around $700.
Live chart: https://t.co/BsX5avJV2X pic.twitter.com/QR82efHyqq
— glassnode (@glassnode) June 9, 2020
Investors have notably been accumulating in the last few weeks with the altcoin signaling higher numbers to be reached and with the prospect of Ethereum 2.0 launch, the event has been set to take prices to new highs. It’s been clear from traders that $300 is their preferred top. After this, Ethereum was set for a short term dump as investors take profit and with concern that the digital asset is overbought.
Ethereum Correlated To Bitcoin
But even before it can reach this high, traders could be getting hasty and readying to take profits at $250. Ethereum’s correlation to Bitcoin has risen in recent days. Ethereum has been looking to Bitcoin for price direction. With Bitcoin stuck below $10K for months, there is a vulnerability that Ethereum could get comfortable just below $250.
If investors do not see Ethereum decouple or Bitcoin leap and lead ETH higher in the next couple of days, many will begin to sell.
During reversals, Ethereum has thus far managed to hold off bears at the $230 region. This has set a strong base from which bulls can rebound and ensure prices remain just below the $250 mark. It is then clear that investors will be looking at this position before any aggressive selling. An initial sell-off will begin with some investors taking profits at $250 but this will quickly accelerate once the $230 support is breached.
At the time of writing this, Ethereum is trading just above $245 having earlier in the day reached $250 as Bitcoin briefly touched $10K before both faltered and retraced to previous ranges.
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