Ethereum Sell-Off: Impacts on Meme Coins & Strategies

The cryptocurrency market is seeing some major shifts, especially with the price trends of Ethereum. Lately, we've witnessed veteran holders selling a staggering 45,000 ETH daily—this is the highest rate since February 2021! This surge in selling is sending ripples throughout the entire crypto landscape.

As seasoned Ethereum holders part ways with their assets, you might be wondering: what does this mean for the broader market, particularly for meme coins? XAceCalls, known for its keen focus on meme coins, is here to shed some light on this phenomenon and offer actionable strategies for traders.

In this article, you’ll discover the market dynamics at play, explore effective trading strategies, and gain insights into meme coins in the current climate. So, let’s dive in!

Ethereum is currently trading at around $1,850, with a market cap sitting at approximately $220 billion. On-chain data shows significant selling pressure, with daily transactions averaging 1.2 million and a trading volume exceeding $8 billion over the past month.

When we compare today’s selling pressure with historical trends, it’s clear that Ethereum's price might hit resistance around the $2,000 mark—a crucial level for traders. Past sell-offs, like the one in May 2021, resulted in sharp declines, highlighting the cyclical nature of crypto markets.

Meme coins often thrive under the influence of Ethereum, as ETH price movements directly impact tokens like Dogecoin and Shiba Inu. Recent trends reveal a strong correlation: when ETH takes a dip, the meme coin market cap usually follows suit.

Current transaction volumes indicate that Solana is averaging about 1.5 million transactions per day, while BSC is around 1.1 million. With considerably lower gas fees on Solana, it’s becoming an increasingly attractive option for meme coin trading.

For you as a professional crypto trader, using key indicators is essential. The Relative Strength Index (RSI) is currently sitting at 37, which suggests potential overselling. Trade...