- Ali, a crypto analyst, thinks Ethereum’s recent price behavior may pave the way for a further drop.
- Dropping below $1,680 has opened the way for a potential ETH drop to the $1,200 region.
- IntoTheBlock’s analysis shows that more users bought ETH tokens above $1,631.11.
Ali, an on-chain analyst and crypto trader, known on X (formerly Twitter) as @ali_charts thinks Ethereum’s recent price behavior may pave the way for a further drop in the price of the flagship altcoin. According to Ali, dropping below $1,680 is cause for concern. He notes that it has opened the way for a potential drop to the $1,200 region for Ethereum.
Ali used a screenshot of IntoTheBlock’s analysis dashboard to show that more users bought ETH tokens above $1,631.11, the price at the time of the analysis. IntoTheBlock’s data showed that ETH holders bought 309,240 ETH, equivalent to $505.07 million above the referenced price. That reflects 96.03% of ETH holders who are Out Of The Money. In other words, that percentage of ETH holders were running at a loss at the referenced price.
On the contrary, only 3.63% of ETH holders are In The Money, meaning that this percentage of holders bought ETH below the $1,631.11 market price. Data from IntoTheBlock shows that this category of holders bought 11,690 ETH in total, equivalent to $19.09 million. However, a third group, At The Money, purchased ETH at the referenced price. They account for 0.34% of ETH holders and purchased 1,110 ETH worth $1.81 million.
ETH dropped to $1,542.6 on August 17, 2023, according to TradingView. That drop marked the altcoin’s lowest price since Q1, 2023, after it consolidated from an impressive bull run. The latest price drop plunged the flagship altcoin into a bearish zone and increased the downward pressure.
Ethereum’s price attempted a recovery but was rejected at $1,744, dropping to $1,631 at the time of writing, per TradingView data. Ali and other crypto analysts believe continued downward pressure could push ETH’s price further down before the beginning of another bull run.