Market watcher Ali Martinez shares his expectations for Ethereum (ETH) amid its sustained downtrend since hitting the $2,140 price level in April.
Ethereum’s (ETH) multi-week downturn has become a concern for investors. Amid the market-wide bearish trend, the second-largest crypto asset by market cap has continued to break key support levels over the past weeks. Accordingly, several addresses holding ETH have entered into losses.
Key Support Levels
Ali Martinez called attention to these developments, citing data from IntoTheBlock. ETH has continued to drop, changing hands at $1,823 as of press time. Martinez shared his expectations for ETH should the token downtrend be prolonged.
If #Ethereum falls below the $1,800 mark, the next significant support level is positioned at approximately $1,600. At this level, 2.48 million addresses acquired a total of 3.8 million $ETH. pic.twitter.com/9TP6xi3R5x
— Ali (@ali_charts) August 16, 2023
According to the prominent market watcher, ETH could head toward the $1,600 price territory if $1,800 fails to hold firm.
The analyst called $1,600 the “next significant support level” for ETH, citing historical accumulation activities. The IntoTheBlock data shared by Martinez reveals that 2.48 million addresses bought a cumulative 3.8 million ETH around the $1,600 level.
It remains to be seen whether ETH will plummet below $1,800 to the $1,600 level, as speculated by the analyst. However, ETH’s daily transaction volume has been low compared to XRP’s daily trade volume in the past weeks.
77% of Ethereum Wallets Face Losses
The recent data shows that 46.77 million ETH held by investors are below their buy prices. This amount translates to 77.56% ETH addresses in loss.
IntoTheBlock also revealed that 13.24 million ETH is in the money. This figure indicates that only 21.95% of wallets holding ETH are in profit, considering the asset’s price at the time of disclosure.
This figure is way below the number of Ethereum holders that registered profits as of July. As reported by The Crypto Basic, 69.3% of wallet addresses holding ETH saw gains last month.