Journalist
Posted:
- ETH was down by more than 5% in the last seven days.
- As its volume dropped, market indicators continued to look bearish on the king of altcoins.
Over the last week, the price of Ethereum [ETH] tanked. However, whales took the opportunity to accumulate more ETH. Does this indicate a market bottom, which could allow ETH to act differently in the coming weeks?
Ethereum: Whales are on the move
CoinMarketCap’s data revealed that Ethereum’s price dropped by more than 5% in the last seven days alone. At the time of writing, ETH was trading at $2,214.39 with a market capitalization of over $266 billion.
Its trading volume also dropped sharply, meaning that investors were not actively trading the token.
Inasmuch, Ali, a popular crypto influencer, highlighted how whales behaved during this period. He noted that a few ETH whales accumulated 100,000 ETH in the last week, worth more than $230 million at the time of the tweet below.
Some of the largest #Ethereum whales have been on a buying spree, scooping up over 100,000 $ETH in just the past week – that’s a whopping $230 million! pic.twitter.com/jWHY6MXDgs
— Ali (@ali_charts) December 16, 2023
AMBCrypto then took a look at Santiment’s data and found that whale activity around the token indeed increased. The fact that they were buying was proven by the supply held by top addresses, which rose at press time.
Interestingly, ETH’s Supply outside of the Exchanges flipped ETH’s Supply on Exchanges. This suggested that buying pressure was slightly high as well.
Source: Santiment
Is this a market bottom?
Though buying pressure was high, it might not yet be the market bottom. AMBCrypto’s analysis of CryptoQyant’s data revealed both its Relative Strength Index (RSI) and stochastic were in neutral positions at press time.
So, we took a look at Ethereum’s liquidation heatmap to see whether the token was near any support level. Our analysis found that the token’s liquidation increased near the $2,140–$2,170 mark.
Hence, it seems likely that ETH’s price might plummet to these levels before it starts its next bull rally. If it does start a rally, then it has to test another key resistance level near the $2,380 mark.
Source: Hyblock Capital
Read Ethereum’s [ETH] Price Prediction 2023-24
The possibility of a further downtrend in the near term was high, as the token’s MACD displayed a bearish crossover. Its Chaikin Money Flow (CMF) also took a sideways path.
Ethereum’s Money Flow Index (MFI) also registered a downtick and was resting near the neutral mark at press time, suggesting a price drop.
Source: TradingView