Cryptocurrencies

Ethereum holder confidence remains strong despite $10M sell-off

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Despite the Ethereum Foundation’s recent $10.46 million ETH sell-off, data indicates that investor confidence in Ethereum (CRYPTO:ETH) remains intact.

Over the past year, the Foundation sold 3,766 ETH, with 1,250 ETH sold in September alone, raising concerns about its impact on the market.

However, Ethereum holders have shown resilience and continue to maintain a positive outlook.

One key metric, the Net Unrealised Profit/Loss (NUPL), shows that ETH holders are in the “optimism” phase, reflecting confidence in the asset’s potential for growth.

According to Glassnode’s data, this sentiment indicates that many investors believe Ethereum’s price may rise, even in the face of recent sell-offs by the Ethereum Foundation.

Another indicator supporting this optimism is the Historical In/Out of Money (HIOM), which highlights that the number of holders in profit has increased from 60% to 64.37% over the past few weeks.

This uptick in unrealised gains suggests that more investors may be encouraged to buy ETH, potentially pushing the price higher.

From a technical analysis standpoint, Ethereum’s Commodity Channel Index (CCI) points to a potential upswing.

With the current price around $2,632, a further increase in the CCI could see Ethereum rally toward $3,255.

However, if the CCI fails to break past the signal line, there is a possibility of a price drop to $2,301.

Despite the sell-off, ETH holders appear to remain confident, with growing unrealised profits and positive market sentiment contributing to a bullish outlook.

While the market awaits further developments, Ethereum’s price potential seems poised for upward movement, supported by key indicators and continued investor optimism.

At the time of reporting, the Ethereum price was $2,630.35.

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