- ETH’s selling pressure was stronger than buying pressure.
- The market’s sentiment shifted from neutral to greed, indicating a potential rise in buying in the days ahead.
Ethereum [ETH] continued to retreat during the weekend, falling as low as $2,407 as of this writing, according to CoinMarketCap.
The largest altcoin fell 2.64% over the last 24 hours, with weekly losses of more than 4%.
Assessing ETH’s next moves
Taking stock of the developments, popular technical analyst Ali Martinez noted that ETH was in a crucial zone. The bounce from the support at $2,388 could potentially drive ETH higher.
Having said that, he also had a word of caution for market traders, remarking,
“If ETH fails to maintain this level, we might see a pullback to the next significant support area around $2,000.”
Well, the mood in the market wasn’t exactly bullish. According to AMBCrypto’s analysis of CryptoQuant data, the ratio of ETH’s buy volume to sell volume of takers has been below 1 for the last 1o days.
This meant that more sellers were willing to sell at a lower price, in turn, signaling that selling pressure was stronger than buying pressure at the time of writing.
Whales go quiet
Another notable aspect that grabbed attention was the activity of whale investors. Using Santiment’s data, AMBCrypto spotted a dramatic fall in large ETH transactions over the past 10 days.
Note how the surge in transactions from the period between the 7th to the 10th of January caused a spike in ETH’s price, indicating that whales were accumulating.
However, the ascent was halted as the whales withdrew. Since then, ETH has been range-bound.
ETH’s reserves on exchanges dropped over the past week as well. This was a sign that whales were in a HODLing mood.
Derivatives traders are bearish on ETH, but…
A look at ETH’s derivatives market highlighted that bearish leveraged traders were dominant at press time.
According to Coinglass, ETH’s Longs/Shorts Ratio has been below 1 since the 12th of January, implying that positions betting on price declines were more than those gunning for price increases.
Read Ethereum’s [ETH] Price Prediction 2023-24
Interestingly, the market’s sentiment shifted from neutral to greed, as per AMBCrypto’s examination of Hyblock data.
This could make way for an increase in ETH buying in the days ahead, thus resurrecting its price.