Ethereum (ETH) Bulls Be Cautious as More Investors Accelerate Profit Taking
The post Ethereum (ETH) Bulls Be Cautious as More Investors Accelerate Profit Taking appeared first on Coinpedia Fintech News
After an impressive rally following the approval of spot Ethereum exchange-traded funds (ETFs) in the United States, ETH’s price against the United States has experienced a significant resistance level of around $3,900. The large-cap altcoin, with a fully diluted valuation (FDV) of about $465 billion and a total circulating supply of around 120 million, is on the cusp of exploding to retest its all-time high (ATH).
Notably, more institutional investors and retail traders have shown significant interest in the Ethereum ecosystem. Furthermore, the Ethereum network is reputed to provide a secure tokenization platform with scalable layer two solutions.
Memecoin Rise Threatens Ethereum Bulls
As Ethereum buyers struggle to pump Ether price beyond $3,950, the meme coin industry continues to register palpable growth. Led by frog-themed Pepe (PEPE), Floki Inu (FLOKI), and Turbo (TURBO), among others, the meme coin industry has surged over 4 percent in the past 24 hours to about $66 billion and a daily average traded volume of nearly $9 billion.
The notable spike in the meme coin industry has a notable impact on Ethereum supply on exchanges. Despite Ethereum supply on centralized exchanges being at a multi-year low, on-chain data analysis provided by IntoTheBlock shows the net inflow to CEXs has hit its highest level since January.
Over the weekend, the net inflow of Ether to centralized exchanges reached 140k, the highest in four months.
Midterm Price Targets
From a technical standpoint, Ethereum’s price against the US dollar is aiming for the next liquidity zone between $4,328 and $4,590, which coincides with the daily 3.618 and 4.236 Fibonacci Extension. If the Ether bulls fail to pump beyond $4k in the coming weeks, the top altcoin will find a solid support level of around $3,525.
