- ETH selling pressure falls to a monthly low as the market loses volatility.
- A lack of bullish momentum confirms that the bears are still waiting on the sidelines.
Ethereum’s native currency, ETH, has been relatively dormant for nearly two weeks during which it produced some sideways activity. This performance may not last long as ETH is on the verge of regaining volatility according to this new data.
Read Ethereum’s [ETH] price forecast 2023-24
The latest data from Glassnode showed that ETH bears were losing traction in the market. This can create an opportunity for the bulls to dominate. But are the bulls ready to take over?
First, let’s take a look at some of the latest market observations that can provide insight into the market’s next direction. The latest Glassnode data showed that the amount of ETH flowing into the exchanges was at its lowest level in the past four weeks. This can be translated as a drop in sales pressure.
📉 #Ethereum $ETH Exchange Inflow Volume (7d MA) Just Hit a 1-Month Low of $11,224,406.65
The previous 1-month low of $11,740,219.01 was observed on May 19, 2023
View statistics:https://t.co/1UqsIRQu7N pic.twitter.com/ISV7jbC5ih
— glassnode alerts (@glassnodealerts) May 22, 2023
Moreover, Glassnode data also showed that more ETH holders are wagering their coins. As a result, the total value committed to ETH 2.0 deposit contracts has increased and has recently risen to a new ATH. In other words, more ETH holders were very confident about locking in their ETH, which meant a long-term focus.
📈 #Ethereum $ETH The total value in the ETH 2.0 deposit contract just reached an ATH of 21,750,259 ETH
View statistics:https://t.co/SzbMPqvhlb pic.twitter.com/72Ce5baIBz
— glassnode alerts (@glassnodealerts) May 22, 2023
ETH bulls are failing to cash in on the current opportunity
These findings may offer favorable prospects, but only if there was a corresponding demand. Our first go-to could be ETH whales that have unloaded some ETH over the past seven days.
Addresses with at least 1000 ETH are falling during this period. The number of active addresses also fell, especially since mid-May. However, data showed that addresses are now starting to see activity again, which may be the first sign of impending volatility.
Source: Glassnode
The address stream painted a shiny picture for the bulls. Receiving addresses were lower between May 19 and 21, due to lower rising demand. Meanwhile, between May 18 and May 21, there was an increase in shipping addresses, indicating that the ratio of buying to selling pressure was still in the bears’ favor.
Source: Glassnode
Based on the above findings, it was clear that there was still a lot of uncertainty in the market on both sides of the dividing line (bulls and bears). ETH’s derivatives statistics showed a similar result.
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ETH’s open interest in the derivatives market was sideways for most of May. So far it does not indicate any significant change. Similarly, ETH’s funding rate confirmed the lack of excitement in the market.
Source: CryptoQuant
Based on the above findings, ETH stats didn’t exactly offer concrete signs of a directional pivot. However, given the fast-paced nature of the crypto market, there could still be a return of directional volatility this week.
