Ethereum Faces Price Drop Amid Whale Selling Pressure
The most important points at a glance:
– Ethereum (ETH) is facing a potential price correction after recently showing signs of weakness.
– Large investors (whales) have sold more ETH than they have bought, increasing selling pressure.
– While Ethereum ETFs saw inflows, these have significantly decreased compared to the previous week.
– Spot markets, on the other hand, are showing positive demand, providing short-term support for the price.
– Technical indicators like a bearish divergence in the RSI suggest a potential price correction.
Ethereum: Selling Pressure from Large Investors Increases
In recent days, the dynamics around Ethereum (ETH) have noticeably shifted. While many investors are hoping for a price increase above the $4,000 mark, signs are mounting that a correction may be imminent. Particularly notable is the activity of large investors, also known as whales. According to data from IntoTheBlock, ETH outflows from this group reached a high of 647,220 ETH on December 3. During the same period, inflows were at 582,710 ETH. The difference indicates that more ETH was sold than purchased, increasing selling pressure.
Ethereum ETFs: Inflows Declining
Another indicator of the current market situation is Ethereum ETFs. These funds allow institutional investors to invest in ETH without directly purchasing the cryptocurrency. While $132.6 million flowed into Ethereum ETFs on December 3, this represents a significant decline compared to $332.9 million on the previous Friday. This could suggest waning interest from institutional investors.
Spot Markets Show Positive Signals
In contrast to ETFs, spot markets continue to show robust demand. According to Coinglass, spot inflows reached $285 million in the past 24 hours, providing short-term support for ETH’s price. This demand helped the price recover from the week’s earlier lows. Currently, ETH is trading at approximately $3,731.
Technical Analysis: Is a Price Correction Looming?
Despite the short-term recovery, technical signals point to a potential correction. The Relative Strength Index (RSI) is showing a bearish divergence, meaning the price is rising while the RSI is falling. Such divergences are often considered precursors to a price decline. If a correction occurs, the price could fall to the support level around $3,050.
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Our Assessment
Ethereum is currently in a critical phase. While spot demand is providing short-term support, the declining ETF inflows and increased selling pressure from whales suggest potential weakness. Technical indicators like the bearish divergence in the RSI reinforce this assessment. Investors should closely monitor developments and keep potential support levels in mind. Short-term fluctuations are likely, and a correction could present an opportunity for a favorable entry point.
Sources:
– IntoTheBlock
– Coinglass
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
|
| Price | $3,256.99 |
| 24h % | -5.82 % |
| 7d % | -2.30 % |
| 30d % | -15.35 % |
| 60d % | 7.47 % |
| 1y % | 43.65 % |
| Market Cap | $393,564,776,513.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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