- Buying sentiment was dominant on the derivatives market.
- Most market indicators looked bearish and suggested a price decline.
While the market turned bearish in recent hours, Ethereum [ETH], like most cryptos, also fell victim to a price correction. The price of the token plummeted to $2,601 on February 13, 2024.
Meanwhile, a whale continued to accumulate more ETH, indicating that there were chances of a trend reversal.
Is the buying pressure on Ethereum high?
AMBCrypto reported rather how Ethereum investors enjoyed gains last week as the token’s value rose more than 15%. However, over the past 24 hours, the token’s price has fallen.
From CoinMarketCapAt the time of writing, ETH was trading at $2,644.49 with a market cap of over $317 billion. While all this was happening, a whale continued to increase his possessions.
Lookonchain posted a tweet on February 14 highlighting an interesting whale activity. According to the tweet, a whale withdrew nearly 40,000 ETH, worth over $99.5 million, from multiple exchanges.
Withdrawals began on February 1, 2024 at an average price of $2,492.
A whale gathers $ETH and go long $ETH by continuing revolving loans #Spark!
The whale has withdrawn 39.9K $ETH($99.5 million) from #Binance, #Bybit, #OKEx And #Bitfinex since February 1 at an average price of $2,492, and 56.8 million borrowed $DAI by #Spark.https://t.co/9EQSrwHnJD pic.twitter.com/6CydURt2pc
— Lookonchain (@lookonchain) February 13, 2024
As more and more whales were stockpiled, AMBCrypto checked Santiment’s data to find the broader market trend. Our analysis showed that whale activity around the token was high as the number of whale transactions increased.
In fact, the whales were actively buying ETH, which was evident from the increase in the supply of top addresses. However, selling sentiment remained dominant in the overall market. This was the case when the supply of ETH on the exchanges increased last week, as did the inflows on the exchanges.
Source: Santiment
Nevertheless, things in the derivatives market seemed bullish for ETH. AMBCrypto’s look at CryptoQuant’s data showed that Ethereum’s funding rate was high, meaning long position traders were dominant and willing to pay short position traders.
Moreover, ETH’s buy/sell ratio also remained in the green. This clearly suggested that buying sentiment was dominant in the derivatives market.
Source: CryptoQuant
What can you expect from ETH?
Since a few of the metrics looked bullish for ETH, we next checked the daily chart to find out if a bull rally is possible soon.
Is your portfolio green? Check the Ethereum profit calculator
According to the analysis, ETH could see a few slow-moving days before a bull rally begins.
The token’s price reached the upper limit of the Bollinger bands, indicating that selling pressure could increase. The Relative Strength Index (RSI) also recorded a decline, further indicating a slight decline in prices in the coming days.
Source: TradingView