- Ethereum dipped from $3.8k to a local low of $3.1k after speculation rose of Tesla selling its Bitcoin
- However, ETH inflows to exchanges are yet to increase with the recent dip
- Ethereum holders are still bullish on the long term value of ETH
- Confidence in the markets is making a comeback after Elon Musk confirmed that Tesla has not sold any Bitcoin
- In the short-term, Ethereum could retest $3,200 before further growth
The last 48 hours have been a tumultuous time period for crypto traders as the markets turned red on speculation that Tesla had sold its Bitcoin as a result of Elon Musk having heated conversations on Twitter with several crypto community members.
The back-and-forth between Elon Musk and crypto twitter shook the markets in a big way. The panic resulted in Bitcoin dropping to $42k and Ethereum losing considerable ground from $3,800 to a local low of $3,100.
Ethereum Inflows To Crypto Exchanges are Yet to Increase
However, the intense market crash due to Elon’s tweets has not shaken Ethereum investors as there is no notable increment in the amount of ETH being deposited on exchanges for selling.
This fact was highlighted by Mira Christanto of Messari Research who also pointed out that Ethereum holders were ‘stubbornly bullish’. She shared her analysis of Ethereum holders through the following statement and accompanying chart.
ETH down -15% from the week without uptick in exchange inflows. Decentralized exchanges also not seeing a meaningful volume uptick. Hodlers are stubbornly bullish.
Ethereum Could Revisit $3,200 Short Term
With respect to short-term price action, Ethereum is currently trading at $3,350 after bouncing off the aforementioned local low of $3,100. However, the crypto markets are yet to inspire confidence in crypto traders even after Elon Musk debunked the theory that Tesla had sold its Bitcoin.
Therefore, Ethereum could be gearing up for a possible second dip to the $3,200 to $3,100 price area before a proper bounce to levels back above $3,500 and $3,600.