- The selling pressure for ETH was stronger than the buying pressure.
- Market sentiment has shifted from neutral to greedy, indicating that buying is likely to increase going forward.
Ethereum (ETH) continued to decline over the weekend, falling as low as $2,407 as of this writing, according to CoinMarketCap.
The largest altcoin is down 2.64% in the last 24 hours, with a weekly loss of over 4%.
Assessing ETH’s next move
Ali Martinez, a well-known technology analyst, surveyed the developments and pointed out that ETH is in a critical area. A bounce from support at $2,388 could potentially push ETH higher.
Still, he gave the following words of warning to market traders:
“mef ETH Failure to hold this level could lead to a pullback to the next important support area around $2,000.”
Well, the market sentiment wasn’t very optimistic. According to AMBCrypto’s analysis of CryptoQuant data, the ratio of ETH purchases to takers’ sales over the past 10 days has been less than 1.
This means that more sellers are willing to sell at a lower price, meaning that selling pressure is stronger than buying pressure at the time of writing.
Source: CryptoQuant
the whale becomes quiet
Another noteworthy point was the activity of whale investors. Using data from Santiment, AMBCrypto discovered a sharp decline in large ETH transactions over the past 10 days.
A surge in trading between January 7 and 10 caused the price of ETH to skyrocket, indicating that whales are accumulating.
But the rise stopped as the whales retreated. Since then, ETH has been range-bound.
Source: Santiment
Exchange holdings of ETH also decreased last week. This was a sign that the whale was in a HODLing mood.
Derivatives traders are bearish on ETH…
Looking at the derivatives market for ETH, it was highlighted that bearish leveraged traders were dominant at press time.
According to Coinglass, ETH’s long/short ratio has remained below 1 since January 12th. This means that there were more positions betting on prices falling than those betting on prices rising.
Source: Coinglass
Read Ethereum (ETH) price prediction for 2023-24
Interestingly, market sentiment has shifted from neutral to greedy, according to AMBCrypto’s survey of Hyblock data.
This could lead to an increase in ETH purchases over the next few days, which could lead to a price revival.
Source: Hiblock Capital