Mike Smith
7 days ago
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Ethereum traded in a narrow range without significant fluctuations in February, but by the end of the month, the worsening bearish sentiment in the market led to a price drop to multi-month lows. The main reason was the general decline in the cryptocurrency sector amid changes in global trade policy.
Additional pressure on ETH is exerted by the growth of its circulating supply. According to Ultra Sound Money, 66,350 ETH have entered circulation over the past month, which is equivalent to $138 million. An increase in available tokens with weak demand usually leads to a decrease in the value of the asset.
At the same time, there is an increase in the volume of ETH in exchange wallets. If on February 21 there were 17.27 million ETH, then a week later the figure increased by 2%, reaching 17.67 million. Such dynamics may indicate investors' intentions to sell assets, which increases pressure on the price.
However, not everyone is pessimistic. Santiment analyst Brian Quinlivan believes that current price levels may be of interest to long-term investors. In his opinion, ETH is in a rare situation where both short-term and long-term holders are at a loss. Historically, such moments have preceded significant market reversals, as large players start buying assets after large sell-offs.
An important factor remains the position of institutional investors and large holders. If they see potential in current prices and begin to actively increase their positions, the market may receive momentum for growth.
