ETH Price: External Factors and Investor Behavior
The price of ETH has captured the attention of investors and analysts as the largest altcoin manages to shift the direction of supply distribution. However, external factors have significantly influenced investor behavior toward the coin in recent months.
These movements in external factors are so significant that ETH investors are taking matters into their own hands. ETH’s price has been heavily influenced by external factors such as regulatory changes, network upgrades, and market sentiment.
These factors have caused significant fluctuations in the price of ETH, causing investors to react accordingly. According to FXstreet, over 16% of users have moved their assets into cold storage, dropping the Eth supply by over 11%.
In addition to closely monitoring external factors, ETH investors are taking matters personally by moving their crypto assets out of exchanges and into cold wallets. This trend has been driven by the skepticism of NFT holders towards the crypto market. As a result, the crypto world has been in flux since the crypto winter’s crypto downturn effects subsided in Jan 2023.
NFT holders are moving their crypto assets out of exchanges and into cold wallets. Cold wallets are considered safer than hot wallets, which are connected to the internet and thus have more possibility of accumulating exchanges vulnerable to hacking and theft. Cold wallets use external storage devices like USB drives or hardware wallets to store crypto assets offline.
Considering the Dip in Other Terms
There are, of course, other reasons for the drop in prices. One possibility is an accumulation of coins on exchanges. The initial signs of accumulation continued deep into 2022, but analysts have since noted selling by investors.
This accumulation is due to investors holding 10,000 to over 10 million coins rather than whales. A major portion of the coin supply has been moving into wallets, with smaller wallets on the rise. This aspect suggests that big firms are waiting for a price rise soon; however, the movement of coins into cold wallets suggests a future selloff.
ETH Price Analysis
The token’s price has been consolidating at the $1,762 level for almost a month. However, the flux operations by the altcoin have not changed the price because it has yet to move past the $1,800 barrier.
As of press time, ETH is trading at $1,570. Of course, the bulls will have their day if the coin deters sellers later. However, if we are looking at a sustainable rally, the coin’s candlestick needs to close above the $1,762 resistance, looking forward to the $1,800 mark as we head into the second quarter of 2023.
However, if the price dips further, it will test the critical support levels at $2,506, invalidating the bullish rally and pushing the price down over 10% to hit the $1,400 mark.