Ethereum (ETH) Price Prediction: Long-Term Holders Dump Coins, ETH Risks 10% Drop

Ethereum's price breached the $2,579 resistance level on Monday. This triggered a wave of older, less active coins to start changing hands.

Ethereum’s price breached a crucial resistance on Monday, prompting a wave of older, less active coins to start changing hands.

According to Santiment's data, the age consumed metric, which tracks the movement of long-held coins, spiked by over 400% on Monday, reaching 66.42 million — its highest since October 4. This indicates that a large volume of dormant coins was traded or moved on Monday.

Typically, when a substantial amount of dormant coins re-enter circulation, it signals renewed activity from long-term holders, who might be aiming to take profits or adjust their positions.

In this case, the accompanying uptick in Ethereum’s netflow volume suggests that a significant portion of these reactivated coins might have been deposited onto cryptocurrency exchanges.

BeInCrypto's assessment of Ethereum's exchange activity, based on data from CryptoQuant, reveals that on Monday, 51,881 ETH coins, valued at over $135 million at current market prices, were transferred to cryptocurrency exchanges, while only 23,600 ETH coins exited these platforms.

When an asset witnesses a net positive flow, such as a higher inflow compared to outflow, it indicates that more investors are depositing the asset on an exchange, suggesting they are selling more than buying.

Ethereum’s price may fall toward the level of $2,579 if the selling activity gains momentum. If the level fails to hold as support, the altcoin’s price may dip further to the support formed at $2,320, representing a 10% drop from its current price.

However, if selling pressure weakens and new demand enters the market, the bearish projection above is invalidated. In this case, Ethereum’s price will extend its gains and climb toward the next major resistance at $3,102.