The profits push Ethereum (ETH) to the overheated state near the key resistance

Despite scaling briefly over the weekend, Ethereum could not maintain its impulse above $ 2,600. The Altcoin fell to $ 2,400 before organizing another recovery and returning to $ 2,600.

The new data now point to the possibility of a short -term setback before a possible breakup materializes.

Cooling period before rupture

The Ethereum market shows signs of overheating, since it approaches the resistance level of $ 2.5K. There has been an increase in negotiation volume, indicating an intensified activity.

In fact, according to Cryptoquant reportThe acute increase is attributed to the profits and the presence of supply at rest at this key psychological level. As Ethereum enters an overheated state, analysts anticipate a short -term correction that could allow the market to cool before they resume potential.

“Consequently, Ethereum is expected to continue its consolidation phase until a new demand arises to boost a break over this resistance range in the middle of the period.”

While short-term market signals suggest a cooling phase, long-term holders continue to accumulate the Alt-Coin.

Long -term condemnation

The presence of Ethereum in centralized exchanges has fallen to its lowest point in more than a decade, driven by the growing accumulation of institutional investors and large holders. As of May 19, Santiment reported that only 4.9% of ETH total supply remains in negotiation places, which represents a historical minimum. In the last five years, 15.3 million ETH have been taken from these platforms.

Meanwhile, Cryptorank.io revealed That more than 1 million ETH left alone in the last month. This trend suggests that users are inclined to keep ETH in the long term instead of trade. The data in the chain confirm this behavior, since it shows that whales (wallets with more than 10,000 eth) have accumulated 450,000 coins since the end of April. By May 10, they collectively had 40.75 million ETH, the highest level since March.

Investment products linked to Ethereum also saw a very necessary respite during the past week, registering $ 205 million tickets during the period, in the midst of renewed investor confidence after the sick update. This led its total year to $ 575 million.