Whales Begin Dumping Ethereum as Large Holder Netflow Surges! How Low Can ETH Price Go?
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The ‘Uptober’ momentum in the market is currently dimming, with both Bitcoin and Ethereum retracting from pivotal price points. This downturn was somewhat expected as whales sought to capitalize on opportunities to secure their profits and make a market exit. As a result, the price of ETH has dipped perilously close to its breakout point, leaving traders in confusion regarding its upcoming trajectory.
Whales Made A Massive Inflow
Whales have ultimately unveiled their pump and dump strategy, highlighting the Uptober trend. Today, Ethereum’s price experienced a significant long-liquidation and a surge in inflow, indicating that whales have exited, securing their profits.
Coinglass data reveals that $28 million worth of long positions were liquidated today after the ETH price declined below $1,725. As a result, it intensified the selling pressure, and the altcoin dropped toward the low of $1,670.
Interestingly, whales have successfully implemented their strategy, evidenced by a spike in Netflow, as per IntoTheBlock data. Since Netflow illustrates the difference between inflow and outflow, a surge in this metric indicates a predominant inflow over outflow, hinting at the likelihood of ETH being sold on exchanges. Currently, the Netflow stands at 46K ETH.
Furthermore, the Netflow ratio of large holders to exchange Netflow has surged to 4.65%, implying that whales are the primary drivers behind the inflow and Netflow spike, indicating a selling sentiment in the ETH price.
Ether futures-based ETFs also triggered the selling pressure as they made a slow start with nine launching, offering varied exposure to ether and bitcoin futures. Valkyrie’s Bitcoin Strategy ETF is adapting its strategy to include ether, while new entrant VanEck’s Ethereum Strategy ETF traded about 25,000 shares, totaling approximately $425,000 on its first day. This was notably subdued compared to ProShares Bitcoin Strategy ETF’s $1 billion first-day trading volume in October 2021.
What’s Next For ETH Price?
Ether’s price failed to break above the $1,750 level as the whales’ exit created a sharp decline on the price chart. ETH price dropped below the EMA20 trend line recently, and bears are now preparing for a downside as bulls face low buying confidence. As of writing, ETH price trades at $1,646, declining over 3.5% from yesterday’s rate.
The 20-day EMA at $1,675 is showing a downward trend, and the relative strength index (RSI) drops below the midline, signaling a bearish dominance. Sellers are currently attempting to eliminate bullish hope by sending the price below EMA100. However, a rebound above the trend line will accelerate the likelihood of a recovery rally surging above $1,700. Should this occur, the ETH price might aim for a push above $1,750.
Sellers, however, will attempt to obstruct the recovery. To dampen the positive momentum, they must pull the price below the downward line. Consequently, the price might prolong its presence within a bearish range, testing the support at $1,530.
Filed under: Bitcoin - @ October 3, 2023 4:07 pm