The expectation of an Ethereum merger unfortunately did not materialize as ETH dropped in price and has maintained a sideways movement since then.
Ethereum investors retreat
Over the past three months, the overall position of Ethereum investors has given mixed signals to the market. But as the broader market trend was bearish throughout the second and third quarters, ETH holders showed similar behavior.
After a wave of optimism in November 2021, ETH holders switched to keeping their investments as safe as possible. This led to the fact that the Vitality of the asset gradually increased.
Vitality is an indicator that shows the age of spent coins. It gives values between 0 and 1. Values close to one suggest old coins are in motion, while values close to 0 suggest transactions are being made with young coins.
Accumulation was in the spotlight between November 2021 and May 2022, however, immediately after the May crash, liquidation became the dominant mood.
Although this liquidation turned back into short-term accumulation, sentiment remained unchanged on the macro timeframe.
Moreover, this is expected to continue over the next few weeks as ETH earnings are currently at a 3-month low.
The total percentage of addresses in profit is a measly 46%, but the problem is not a lack of profit, but a stagnant price movement. Since it is difficult for the price to rise in the current market conditions, a fall in price could cause ETH to set a market bottom (green zone).
Ethereum supply in profit
Historically, this area was the first sign of a trend reversal, and after that, the price of ETH may rise.
However, this will not happen anytime soon as ETH is currently consolidated.
Ethereum is waiting for a sign
Whether it is a bearish or bullish signal, any signal can make ETH move, which is what is needed at the moment as the altcoin king has been hovering at the same price for almost two weeks now.
Fluctuating between resistance and support levels set at $1,420 and $1,240, ETH is approaching a 10-month-old downtrend wedge. Having overcome it and tested as support, ETH will approach the short-term resistance level.
4-hour Ethereum price chart
Also, if the bullish sentiment continues, he could take ETH through the resistance level and turn it into support, which is the current target for Ethereum.
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