Ethereum (ETH) has been subjected to the heavy selling pressure that Bitcoin and other major altcoins have been facing over the past couple of days, with the intense market-wide downturn leading many analysts to flip bearish on the markets.
In the near-term, it is highly probable that ETH will see some further downside, which could be further perpetuated by miner’s currently being in the process of offloading their holdings, potentially placing significant pressure on the cryptocurrency.
This selling pressure from miners also comes as the cryptocurrency’s technical situation begins degrading, with the culmination of these factors potentially opening the gates for significantly further losses.
Ethereum Shows Intense Signs of Bearishness as Bulls Struggle to Build Strength
At the time of writing, Ethereum is trading down over 5% at its current price of $223, which marks a notable decline from daily highs of $235 that were set yesterday when bulls attempted to catalyze some upwards momentum.
This rally was met with significant selling pressure, however, which led to a notable rejection that has further confirmed the cryptocurrency’s firm downtrend.
In the near-term, it is probable that the aggregated crypto market will see further losses as Bitcoin continues trading sideways beneath its key support at $8,700.
Escobar, a prominent cryptocurrency analyst on Twitter, spoke about Ethereum in a recent tweet, noting that a “red pill could happen” while referencing a bear-favoring scenario where ETH dips below $200.
“ETH – Bounce is looking weak, Red pill could happen,” he explained.
Bounce is looking weak, Red pill could happen. pic.twitter.com/jMFEXiWE54
— ESCO₿AR (@TraderEscobar) February 28, 2020
ETH Miners Begin Offloading Their Holdings
A lack of technical strength isn’t the only thing currently counting against ETH’s bulls, as Spencer Noon – the head of crypto investments at DTC Capital – explained in a recent tweet that Ethereum miners are in the process of offloading a significant amount of their recently acquired holdings.
“Ethereum miners have stopped accumulating for the time being. – Since February 9th, ETH miners have offloaded more than 30,000 ETH, seemingly in unison with Ethereum’s short-term market conditions and its ongoing correction,” he explained.
6/10. #Ethereum miners have stopped accumulating for the time being.
– Since February 9th, $ETH miners have offloaded more than 30,000 ETH, seemingly in unison with Ethereum’s short-term market conditions and its ongoing correction. pic.twitter.com/LKviUc1gRH
— Spencer Noon (@spencernoon) February 28, 2020
While keeping in mind that Ethereum appears to be both technically and fundamentally weak, it does seem as though it may see further near-term losses before it is able to garner any significant upwards momentum.
Featured image from Shutterstock.