After several months of bearish price performance, Ethereum is finally shifting toward positive territory, recording significant gains due to a recent bullish market condition. Interestingly, this surge comes following heightened selling pressure as many investors were observed dumping their ETH holdings.
Retailers Dump Before Ethereum’s Surge
In a surprising market move, Ethereum has jumped above $2,300 for the first time in over six weeks, coinciding with the apparent sell-off of retail investors’ holdings. Leading market intelligence and on-chain data platform Santiment reported the counterintuitive market move in a recent post on the X (formerly Twitter) platform.
On-chain data shows a surge in outflows from retail investors, who appear to have lost faith in ETH’s potential in light of previous price fluctuations. This negative behaviour from retail investors would typically trigger bearish pressure for ETH.
However, it seems to have removed overhead barriers and created room for big investors to buy, causing a sustained rally for the altcoin. Such a trend underscores the disparity between retail and big investors, which could play a crucial role in shaping the next phase of Ethereum’s market dynamics.
According to the platform, the move is a textbook example of how Ethereum pays to be a contrarian against the retail crowd. Santiment highlighted that many retail holders sold their holdings due to poor price performance following the Ethereum network‘s Pectra Upgrade that occurred on Wednesday.
During the period, these investors were seen instructing others to offload their ETH holdings in favor of various meme coins. However, it turns out that the altcoin had other intentions after the Fear, Uncertainty, and Doubt (FUD) from the retail crowd.
Santiment highlighted that Ethereum’s surge above the $2,075 mark has put the altcoin at the top of recent market gains, rewarding investors who have endured the notoriously poor performances over the past months. With indicators and growing market participation signaling upside momentum, ETH’s newfound bullish action is likely to extend, pushing the asset towards the $2,500 level, where the next resistance area lies.
In the meantime, the platform has warned that prices almost always deviate from retail holders’ expectations and has urged investors to closely monitor the chart to determine when price extremes are being called below or above ETH’s current market level.
ETH Pump Has Started
ETH has displayed remarkable movements in the last few days, reigniting the conviction of an incoming major upward move. After going through Ethereum’s renewed upsurge on the weekly chart, Ted Pillows, a crypto expert and investor, claims that the much-awaited major “pump has started.”
Pillows has pointed out the $2,200 level as the next key zone in ETH’s rally. Should the altcoin hold above this level, the expert predicts a massive upswing that is likely to spur an altseason. Looking at the chart, ETH has to rise to $2,815 before continuing its move to the $4,092 level.
Featured image from Pixabay, chart from Tradingview.com
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