Ethereum dogged by selling pressure: it could be ready to…

• The negative on-chain volume in earnings could lead to an increase to $2,000.
• Analysts argued over the possibility of ETH flipping BTC.

Ethereum [ETH] saw significant profit taking after the slight increase over the past seven days, Santiment revealed. With market dynamics and investor sentiment affecting the price, the altcoin crossed the $1,900 market.

🤑 #Ethereum is getting a large amount of profit taking after a mild +5% price increase over the past week. Usually we want to see a lot of traders #hodlingand if this ratio comes to earth, it would be a signal $ETH is on its way to $2,000. https://t.co/lQyVya3rqj pic.twitter.com/F2QvD5gpno

— Santiment (@santimentfeed) June 3, 2023

However, as mentioned above, the holders did not hesitate to turn unrealized profits into profits taken. This sale pressure has caused the ETH price to fall as hands were exchanged at $1,894 at the time of writing.

ETH: In a tight situation

As it stands, the ratio of daily on-chain transaction volume in profit to that in loss was on opposite sides. While the latter increased, the former fell into negative territory.

Naturally, these stats show the total number of coins or tokens that have moved in profit or loss within an interval.

When the profit ratio is negative, it means that loss-making volumes have now overwhelmed realized profit takers.

Hence, Santiment noted that such a trend could indicate how FOMOers have given up on the upswing. The coins, in turn, could end up in the hands of holders with strong convictions. This would then be the bull ride up to $2,000.

Nevertheless, it may be too early to assume that a resurgence is on the radar due to the exchange current. At the time of writing, on-chain data showed ETH exchange inflows at 14,600.

This statistic describes the number of coins being exchanged on a broader spectrum. On the other hand, the outflow from the exchange, which indicates that the coins left the exchange, was 15,000.

Source: Sentiment

Next, a slight difference as shown above suggests a close call between holders with intent to sell and those sending wallets for a possible long term. Therefore, ETH could continue consolidating unless one significantly outperforms the other.

No one-way traffic

In terms of the long term, crypto analyst Morgan Benett tweeted that ETH tended to pivot Bitcoin [BTC] in the next two to three years.

He explained that the turnaround would be soft and could begin in 2025. Subsequently, trading volumes, high volatility and the “nervousness” of BTC holders could contribute to the event. Finally, Bennett pointed out:

“ETH replaces BTC, but the “digital gold” meme is scorched earth. What happened to BTC could happen to ETH at any time now. Permanent loss of confidence.”

Read Ethereum [ETH] Price prediction 2023-2024

However, Chris Blec, a decentralized finance researcher, took issue with Benett’s analysis, noting that he skipped over the historical performance of both cryptocurrencies. Blec tweeted:

“I don’t disagree that the flipping could happen, but that line is really ridiculous… you just completely ignored all the data points between 2016 and today.”