The current market situation suggests that Ethereum’s price target of $5,000 will remain a pipe dream.
There are two main factors that indicate that market optimism is waning and that the $4,956 mark reached on August 24 will be the peak of the ETH price. Firstly, from September 2 to 5, the US-issued эфириум-ETF recorded capital outflow, and their capitalization level decreased by $787,6 million, which in percentage terms is 3,13%.
Capital inflow and outflow from US ETH-ETF
Secondly, long-term investors began to actively get rid of Ethereum when its price exceeded $4,000. This is indicated by the indicator called «Unrealized Profit and Loss», which fell below 0,65. Historical data suggests that breaking this mark foreshadows a fall in the ETH price.
Change in the indicator «Unrealized profit and loss» of long-term investors
Against the backdrop of these negative factors, the price of Ethereum is gradually decreasing and tends to $4,000. Of particular concern is the high volume of coins sold on September 5. Such dumps destroy support barriers and serve as a harbinger of the acceleration of the downward trend. Therefore, it can be assumed that the Ethereum rate will fall to $4,000 over the next week, and the path to $5,000 will remain closed.
Large Amount of ETH Sold on September 5th