Ethereum
Blood in the water? Ethereum whales circle as prices fall — TradingView News
Ethereum (ETH), the world’s second largest cryptocurrency by market capitalization, has recently created a confusing scenario for investors. Despite a notable drop in its price, on-chain data reveals that large investors, often referred to as “whales,” are accumulating ETH. This could signal a potential buying opportunity, although technical indicators suggest a weakening uptrend, leaving Ethereum’s near-term future uncertain.
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NewsBTC
Ethereum whales see opportunity in falling prices
In a recent analysis by NewsBTC, it was revealed that wallets holding more than 10,000 ETH have been steadily acquiring more tokens since late May. This accumulation period, based on Glassnode data, coincides with a drop in Ethereum’s price from around $3,074 to its current price of $3,670. The significant increase in holdings of these large investors suggests that they view the current price decline as an attractive entry point, anticipating a future price rise.
Adding to the bullish sentiment, CryptoQuant’s Netflow data for Ethereum showed dominance of negative flows in recent weeks. This means more ETH is leaving exchanges rather than entering them, a traditional indicator that investors are holding on to their ETH rather than selling it. This behavior can reduce the supply available in the market, which could increase prices in the long term.
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Technical Indicators Are Raising Warning Signals
Despite the optimistic signs of accumulation and whale trading flows, technical indicators paint a less rosy picture. Ethereum has been trading in a tight range around $3,600 for the past three days, showing a slight decline of around 0.8% today. Although the Relative Strength Index (RSI) remains above 50, indicating a slight upward trend, it is currently on a downward trajectory. If this trend continues and the RSI falls below the neutral line, it could suggest a potential price decline.
The downward movement in the RSI indicates weakening momentum which, if not reversed, could lead to further declines in the Ethereum price. This bearish technical outlook stands in stark contrast to the positive on-chain data, creating a complex situation for investors trying to predict the market’s next move.
Ethereum’s near-term future appears to depend on the emergence of a significant catalyst. Overall market sentiment could play a crucial role, with a positive change potentially restarting the uptrend. Additionally, upcoming news or developments specific to the Ethereum network could also serve as a catalyst for price action. Successful upgrades or increased adoption of decentralized applications (dApps) built on the Ethereum blockchain could spark renewed investor interest and drive prices higher.
Featured image of Harbor Breeze Cruises, chart by TradingView