- Ethereum’s exchange reserve increased, meaning it faltered under selling pressure.
- Most market indicators were bearish, but a few metrics supported the bulls.
After crossing the $1,900 mark, Ethereum [ETH] again witnessed price corrections as the value fell. Interestingly, a tweet from Lookonchain hinted that whales were selling their ETH holdings. This can be detrimental to ETH, as it can result in a further price drop.
Read Ethereum [ETH] Price prediction 2023-24
Whale confidence is declining
CoinMarketCaps facts revealed that the price of ETH is down more than 4% in the past seven days. At the time of writing, it was trading at $1,839.66 with a market cap of over $221 billion. The price drop was accompanied by a double-digit drop in 24-hour trading volume.
Things can even get sour like Lookonchain’s tweet pointed out that a whale with an exceptional track record recently deposited ETH worth nearly $50 million into Binance. Against the deposit, the whale took in 15.9 million USDT.
In recent years, this particular whale has always bought ETH at low prices and sold the token, earned profits, which were followed by ETH price corrections. Therefore, Ethereum’s price drop seemed possible.
Ethereum faces high selling pressure
From CryptoQuant, ETH’s exchange reserve increased. An increase in the metric means that investors sold their holdings, which is a bearish signal.
Santiment’s chart revealed that Ethereum’s on-exchange and off-exchange supply were also close together, which looked bearish as there was a possibility that the former could reverse in the coming days.
Source: Sentiment
Sellers will soon be able to step up their game
A look at Ethereum’s daily chart revealed quite a few statistics supporting the bears. For example, the Money Flow Index (MFI) was about to enter the overbought zone. ETHThe Relative Strength Index (RSI) registered a decline. In addition, the MACD showed the possibility of a bearish crossover, increasing the likelihood of a sustained downtrend.
Interestingly, the Exponential Moving Average (EMA) Ribbon chose to support the buyers as it showed a bullish crossover.
Source: TradingView
Is your wallet green? Check the Ethereum Profit Calculator
Like the EMA ribbon, some of the on-chain metrics looked bullish. According to CryptoQuant, ETH’s buy/sell ratio was green. The metric suggested that buying sentiment was dominant in the derivatives market. At the same time, ETHNetwork growth also remained high.
However, nothing can be said with the utmost certainty as Ethereum’s MVRV ratio fell significantly, which was bearish.
Source: Sentiment
