Despite ETH price drop, whales are depositing tokens in droves
Ethereum (ETH) has not been immune to the wild volatility in the crypto market. Despite the sharp drop in ETH prices over the past week, data shows that whales are still depositing the token in large quantities.
Ethereum Price and Market Volatility
According to data from CoinMarketCap, the price of ETH fell by more than 12% in just 7 days. AMBCrypto’s analysis of IntoTheBlock data also shows that the average balance of ETH fell, possibly due to a significant price correction. However, ETH’s daily chart shows a change in trend, with the price gradually recovering in recent hours.
Whales’ Movements and Market Reactions
Lookonchain's tweet noted that as the price of ETH fell, several whales began to sell ETH. Specifically, three Ethereum whales deposited 28,558 ETH to Binance, with a total value of more than $82.2 million. However, not long after, ETH prices rebounded on the charts, and the altcoin price has risen by nearly 3% in the past 24 hours alone. As of writing, ETH is trading at $2,967.81 with a market cap of more than $356 billion.
Prediction of future trends
Despite the rebound in ETH prices, its trading volume has seen a double-digit decline. This suggests that ETH may find it difficult to maintain its bullish momentum. Some other indicators also appear quite pessimistic. For example, despite the rise in ETH prices, selling pressure remains high, and data from CryptoQuant shows that ETH's foreign exchange reserves have increased, indicating that some investors are choosing to sell.
However, some indicators support the continued upward trend of ETH prices. For example, ETH's funding rate has risen, indicating that long traders are dominant and willing to pay short traders. CryptoQuant's data shows that ETH's relative strength index (RSI) is in oversold territory, which may increase buying pressure in the coming days and push prices higher. The layout is ongoing, communication +: GOOOKOOOY welcomes everyone to actively participate and witness the moment of miracle together
In addition, AMBCrypto's analysis of Glassnode data shows that Ethereum's NVT ratio has fallen sharply, which generally means that the asset is undervalued and may lead to price increases. ETH's price also hit the lower limit of the Bollinger Band, further emphasizing the possibility of a rebound. Its money flow index (MFI) is about to enter the oversold area.
Despite this, the Chaikin Money Flow (CMF) indicator still appears bearish, with a current value of -0.09. These data show that the future price trend of ETH is full of variables, and market changes need to be observed carefully.
