- Buying sentiment was dominant in the derivatives market.
- Most market indicators looked bearish and suggested a price drop.
As the market turned bearish in the last few hours, Ethereum [ETH], like most cryptos, also fell victim to a price correction. The token’s price plummeted to $2,601 on the 13th of February 2024.
Meanwhile, a whale continued to accumulate more ETH, hinting that there were chances of a trend reversal.
Is buying pressure on Ethereum high?
AMBCrypto reported earlier how Ethereum investors enjoyed profits last week as the token’s value surged by more than 15%. However, in the last 24 hours, the token’s price has dropped.
As per CoinMarketCap, at the time of writing, ETH was trading at $2,644.49 with a market capitalization of over $317 billion. While all this happened, a whale continued to increase its holdings.
Lookonchain posted a tweet on 14th February highlighting an interesting whale activity. As per the tweet, a whale has withdrawn nearly 40k ETH, which were worth over $99.5 million, from multiple exchanges.
The withdrawals began on the 1st of February 2024 at an average price of $2,492.
A whale is accumulating $ETH and going long $ETH by revolving loans on #Spark!
The whale has withdrawn 39.9K $ETH($99.5M) from #Binance, #Bybit, #OKEx and #Bitfinex since Feb 1 at an average price of $2,492, and borrowed 56.8M $DAI from #Spark.https://t.co/9EQSrwHnJD pic.twitter.com/6CydURt2pc
— Lookonchain (@lookonchain) February 13, 2024
Since a whale continued to stockpile, AMBCrypto checked Santiment’s data to find the broader market trend. Our analysis revealed that whale activity around the token was high as its number of whale transaction counts increased.
In fact, the whales were actively buying ETH, which was evident from the rise in its supply held by top addresses. However, selling sentiment remained dominant in the overall market. This was the case as ETH’s supply on exchanges went up last week and as did its exchange inflow.
Source: Santiment
Nonetheless, things in the derivatives market looked optimistic for ETH. AMBCrypto’s look at CryptoQuant’s data revealed that Ethereum’s funding rate was high, meaning that long-position traders were dominant and were willing to pay short-position traders.
Additionally, ETH’s taker buy/sell ratio also remained green. This clearly suggested that buying sentiment was dominant in the derivatives market.
Source: CryptoQuant
What to expect from ETH
Since a few of the metrics looked optimistic for ETH, we then checked its daily chart to find out whether a bull rally is possible anytime soon.
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As per the analysis, ETH might showcase a few slow-moving days before starting a bull rally.
The token’s price touched the upper limit of the Bollinger bands, which indicated that selling pressure might increase. Its Relative Strength Index (RSI) also registered a downtick, further suggesting a slight price drop in the coming days.
Source: TradingView