Ethereum Price Slips Amid Signs of Potential Rally

Ethereum ([ETH]) experienced a 2% decline on Friday, dropping below the $1,600 mark and trading at $1,549.76, with a market capitalization exceeding $186 billion. This decrease followed a price surge on October 16 and a subsequent correction. Despite this recent downturn, analysts believe that Ethereum could be on the verge of a bullish rally.

Crypto analyst Mag highlighted that Ethereum is at a crucial juncture. If it can stay above its long-term support trendline, it may trigger a significant price increase. The pairing reached a target of 0.055 while testing the long-term trendline support zone, supporting this optimistic outlook.

Data from CryptoQuant reveals a high volume of net deposits on exchanges alongside a significant selling sentiment in the derivatives market, indicating increased selling pressure for ETH. However, information from Santiment shows that Ethereum’s supply held outside of exchanges has now surpassed that on exchanges, suggesting a trend of increased token accumulation.

In related news, Binance announced scheduled wallet maintenance for October 24, 2023, at 7:00 a.m. UTC. This maintenance will temporarily suspend deposits and withdrawals on the Ethereum network, although trading will continue uninterrupted. A similar maintenance task was conducted on the Tron network earlier in the week.

Moreover, Ethereum is witnessing substantial accumulation by whale addresses that hold over one million ETH, with these addresses now controlling 32.3% of the total ETH supply—marking the highest share since July 16. Additionally, October 16 was notable for Ethereum, as transactions exceeding $1 million reached their second highest frequency in a month.