After a minor upswing, the markets have scrambled back under bearish influence as Bitcoin slides close to $83,000. Despite this, the Ethereum price stands strong above $1500 and defends the support, suggesting greener days could be fast approaching. Meanwhile, in the short term, the ETH price is experiencing a notable downturn as it has declined by over 3% in the past 24 hours. Moreover, the bulls and the whales have been showing disbelief over the token, raising concerns over the next price action.
The spot ETF of BTC & ETH witnessed constant outflows for over a week. While Bitcoin recorded an influx of over 900 BTC, spot ETH ETF continues to face outflows of over 8750 ETH. This suggests a significant shift in the crypto sentiment, which seems to have influenced the whales too. In the latest development, the mega-whales have been dumping on ETH, which raises huge concerns over the next price action.
Interestingly, the ETH price has been showing resilience to the rising bearish influence, and despite this, the whales have been selling Ethereum. The data from Glassnode suggests that the wallets holding more than 10,000 ETH witnessed a major drop over the past month, and this comes at the time when they had begun to accumulate. On the other hand, reports suggest, Galaxy Digital has been constantly transferring ETH to Binance, which hints towards incoming turbulence.
They have been constantly transferring ETH to Binance for the past 4 days, which now stands at around 37,500 ETH, worth roughly $60.4 million. With this, there has also been a notable drop in investor confidence as Ethereum’s TVL has decreased significantly. This reduction in liquidity and enthusiasm among investors could affect the overall market performance.
As seen in the above chart, the ETH price has remained stuck within a descending trend as the token has been constantly forming lower highs and lows. The Bollinger bands have also been contracting and expanding, signalling the rise and drop of volatility at frequent intervals. However, the breakout that followed failed to sustain for a long time and resulted in a fresh pullback. On the other hand, the +Di & -Di were about to undergo a bullish crossover, but they seem to have diverged apart.
Therefore, the bearish sentiments continue to persist for the Ethereum price due to a lack of volume or volatility. Unless the price secures a base above $1650, the bearish clouds will continue to hover over the rally.
