Whale Interest Wanes in Ethereum Amidst Bearish Signals

A few days ago, the price of Ethereum took a significant dive and has since failed to maintain its trading position near $3,300. Whenever ETH approaches the critical $3,000 mark, buyers step in to defend the support level. However, these short-term buyers subsequently exit the market at peak prices. As a result, whale interest has plummeted, leading to a decrease in ETH price volatility.

Billions in Large Transactions Cleared

According to CoinGlass, over the past 12 hours, positions worth $110 million have been liquidated. Notably, Ethereum and BTC positions dominated, with HBAR also witnessing significant liquidations valued at $7 million, attributed to the token’s trading volume surging over $1 billion. Additionally, PEPE saw liquidations amounting to $2.3 million.

Last week, following the Bitcoin halving event, the market experienced a robust recovery due to increased accumulation. However, as short-term holders begin to sell off, the market is currently adjusting, with Ethereum prices facing significant sell-offs at resistance levels.

Data from IntoTheBlock indicates that the past week saw a decline in large transaction volumes involving Ethereum, dropping from a high of $7.7 billion to $5 billion. This reduction suggests that the recent price drop has deterred major investors from purchasing Ethereum, leading to decreased volatility. In fact, Ethereum’s volatility has decreased from a peak of 62% to 53%.

However, as Ethereum attempts to break through the $3,300 barrier, the NVT ratio (which compares network value to transaction volume) has declined over the past 48 hours. The rapid growth in transaction volume relative to network value has brought the NVT ratio down to 60, indicating that Ethereum may be undervalued. This could signal the potential for a strong rebound in the coming days.

What’s the Next Move for ETH Price?

Ethereum’s price soared to the $3,300 mark; however, it faced immense selling pressure near this level, leading to a slight pullback. Consequently, the ETH price has now fallen below the Fibonacci level, testing buyers’ patience at $3,100. At the time of writing, ETH is trading at $3,162, having fallen over 2.1% in the past 24 hours.

The 20-day moving average appears to be flattening, and the Relative Strength Index (RSI) is breaking below the midpoint, indicating a rise in bearish dominance. If Ethereum’s price falls from the 20-day moving average, it could drop to $3,056. It is crucial for the bulls to hold this level; failing to do so could lead to a further decline to $2,850.

Conversely, if Ethereum rebounds above the 20-day moving average, it could strengthen buyers’ resolve. Subsequently, the price might rise to the 50-day Simple Moving Average (SMA) at $3,586 and potentially reach $3,700. Breaking through this resistance level would indicate that the slump may have ended, leading to ETH price consolidation around $4,000.

Currently, the long-to-short ratio for ETH price is soaring, nearing 1.32, suggesting that bullish dominance is on the rise.

Sentiment: Neutral