- Sentiments reported that 110 ETH was transferred off of exchanges yesterday.
- Ethereum rises, spikes in the middle of the week, but falls towards the latter part of the week.
- ETH prices may continue to fall while Whales may try to dismantle support levels.
Market Intelligence Platform for on-chain and social metric, Santiment reported that approximately 110 Ethereum (ETH) was transferred off of exchanges yesterday. This transfer which was worth 118M was considered the largest transfer that happened after August 21. The non-exchange Ethereum amount now sits at an all-time high of 115.88M $ETH while its exchange supply is at its lowest in ~5.5 years.
Notably, the price of Ethereum has been falling as more ETH has been offloaded off of the exchanges. Currently, there is 10.66M worth of ETH on exchanges, the lowest since 2018. As these massive transfers happen, the crypto community seems to be stunned by the fact that this could be an attempt by the whales to manipulate the market.
When looking at the weekly chart for ETH, we could see a spike right in the middle of the week. Ethereum was exchanging hands at $1,621 when the markets opened for trading for this week. From September 29 to October 2, ETH was moving laterally between the $1,640 and $1,700 price range. Late into October 2, the bulls took the upper hand and ETH spiked to $1,736, the highest it achieved for the past week.
However, the very next day ETH was overtaken by the bears who made ETH lose value drastically. It lost around $100 within three days. At press time ETH is trading at $1,634 after gaining 0.82% in 24 hours.
When looking at the above chart we can see that after a drastic drop in price on Aug 17, 2023, ETH has been consolidating. Currently, after touching the upper Bollinger, the price has returned close to the SMA and there is a chance that the prices could further fall. The above negative sentiment could be supplemented by comparing the encircled section in the graph. Therefore, if the above-stated thesis is validated, ETH may consolidate and take another delve further below.
It may fall to $1,550 during consolidation and the next fall may take it to $1,415. Moreover, there seems to be more trading activity for ETH in the prices immediately below than the prices immediately above. Additionally, the accumulation and distribution line reads a value of 117M and it is going down. This indicates that the downward trend has volume to back up its motion in that direction.
However, having said that the whales may once again add more ETH into exchanges and may try to dismantle the support levels. As such, traders may need to keep a watchful eye on the market.
On the other hand, if the bulls dominate the market, then ETH could rise and reach $1,860. With more pressure from the bulls, ETH may even cross over the $2,000 mark.