Although Ethereum has been in a certain balance recently with the accumulation of large investors, it has difficulty finding a strong direction due to the selling pressure of small investors. In particular, increasing money transfers to the Binance exchange and sales from this platform led to the price not being able to rise permanently above the $ 2,330 level.
Small investor sales suppress the rise
Market data shows that retail investors tend to divest their Ethereum holdings. While large investors, who are described as whales in the crypto world, and companies such as Bitmine continue to accumulate, retail investors insist on selling. This causes the price movement to remain horizontal.
According to CryptoAppsy data, the price of Ethereum was recorded at $2,332.55. In the same period, the anxiety and greed index in sentiment analysis increased to 61 points, but this level did not give a clear signal in terms of direction determination.
When the ETH price is very close to the average realized cost level, large investors tend to buy or protect their assets; On the other hand, it stands out that small investors tend to jump into sales.
The main reason why the market is moving in a narrow band is the DeFi platform attacks in recent weeks and the lack of trust in the market. Especially after the Kelp DAO attack, instability on the decentralized finance side increased the concerns of individual investors.
Resistance and sell wall in spot market
It was stated that Ethereum encountered a serious sales wall above $ 2,330 in the spot market, and a sale of approximately 3,500 ETH was expected at this level. This selling pressure prevents the price from jumping even though buy orders are concentrated around $2,320.
On the other hand, whales have recently tended to keep their assets instead of realizing their losses. However, retail investors want to take their profits by sending ETH to the stock market during short-term rises. These movements, which have become more frequent in the last week, cause the price to remain in a narrow range.
There is a remarkable increase in money transfers to Binance. Market experts are of the opinion that this activity has a greater impact on prices than whale purchases.
Breaking trend from Bitcoin and developments in the derivative market
Although Ethereum has technically positive on-chain indicators, it has recently completely diverged from Bitcoin’s movements. Since the beginning of July, the ETH price has been more timid.
In the derivative market, the open position size of Ethereum decreased to 12.47 billion dollars. This amount remained below the recent peak of $14 billion. Additionally, it is noteworthy that ETH, especially at the level of $ 2,427, is heavily exposed to short positions, while bullish positions are limited. Experts state that despite the abundance of short positions, there is not enough trigger for a big jump.
Ethereum’s dominance in terms of market capitalization has decreased to 10.1 percent. Bitcoin’s market share increased to 58 percent. While the RSI score, one of the technical indicators, is at 49 on the ETH side, this value has reached 53 on the Bitcoin side.
