According to recent market data, Ethereum (ETH) experienced a net inflow of 88,000 tokens across major exchanges. The rise in movement across ETH markets signals ascending buy pressure that might signal a forthcoming market turnaround. However, selling pressure from large holders continues to weigh on ETH’s price action.
Whale activity in decentralized exchanges (DEXs) shows a bullish trend, with whales buying more ETH than they sold. Over 24 hours, whales accumulated $9.41 million worth of ETH while selling only $6.17 million. Such differences between investor buying and selling operations demonstrate strong sentiment among major market players while volatile remains.
Meanwhile, Smart Money (SM) and Small DEX Traders (SDTs) also increased their buying activity, though with smaller margins. SM recorded $1.77 million in buys versus $1.96 million in sells, suggesting cautious optimism. SDTs registered $3.21 million in buys against $2.34 million in sells, indicating modest accumulation.
Whale Accumulation Signals Potential Recovery
Whales have shown increased interest in accumulating ETH despite broader market uncertainty. Over six hours, they maintained a net buying volume of $1.73 million against a selling volume of $1.60 million. This suggests that large investors expect a recovery or a potential price floor.
Additionally, historical trends indicate that similar accumulation phases have preceded major price rallies. After a prolonged accumulation period, the late 2023 to early 2024 rally saw ETH surge 157.49%. If this pattern holds, ETH could experience an upside move of 228.2% in the coming months.
However, resistance levels above $3,000 pose challenges to a sustained rally. Large traders have been offloading positions at these higher levels, forming barriers to upward movement. A breakout above key resistance zones would be necessary for ETH to regain bullish momentum.
ETH Faces Selling Pressure on Binance Perpetual Market
Ethereum continues to face significant selling pressure on the Binance ETH/USDT perpetual market. Recent data from Coinglass reveals that ETH dropped to $2,126, reflecting strong sell orders from large holders. Bearish market sentiments stay powerful in the near future.
The market has observed increased sales above $3,000, which has created barriers to price increases. The high trading volume of 1.306 billion USDT underscores the role of institutional and large-scale traders in ETH’s price movements. As a result, ETH remains vulnerable to further declines unless strong buy walls emerge at lower levels.
Moreover, ETH has broken key psychological levels, including $2,400 and $2,200, reinforcing the bearish outlook. Further downward price movements might become probable due to ongoing selling pressure, which continues to decline.
Declining Long/Short Ratio Reflects Weakening Sentiment
Ethereum’s long/short ratio has declined, indicating a waning bullish sentiment. Data from Coinglass shows that the ratio has dropped below 0.90, reflecting an increase in short positions. This trend suggests that traders anticipate further price declines.
Charts reveal that sell volume has consistently outweighed buy volume, reinforcing a bearish market sentiment. The long/short ratio has remained below 1.0 for several periods, particularly toward the end of February. This downward trajectory suggests that traders expect ETH’s price to fall further before stabilizing.
Historically, a declining long/short ratio signals increased bearish sentiment. A sustained drop in the ratio often coincides with price corrections and extended downtrends. ETH could continue struggling to reclaim higher price levels unless bullish momentum returns.
Conclusion
Ethereum’s market dynamics indicate mixed signals, with whale accumulation contrasting persistent selling pressure. While major investors show confidence through accumulation, resistance at higher levels remains a hurdle. ETH’s long/short ratio and selling activity suggest further downside risks in the short term.
Strong demand must counter ongoing sell-offs for ETH to confirm a market bottom. If accumulation trends persist, ETH could stabilize and attempt a rebound. However, breaking key resistance levels will be essential for sustained bullish momentum.
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FAQs
What does Ethereum’s net inflow of 88K tokens mean?
It suggests increased accumulation, which could indicate a market bottom if sustained.
Why is whale activity significant for Ethereum’s price?
Whales influence market trends as buying or selling can drive significant price movements.
What does the declining long/short ratio indicate?
It signals increasing short positions, which could lead to further ETH price declines.
Is Ethereum likely to rebound soon?
A rebound is possible if demand increases and resistance levels above $3,000 are broken.
How does selling pressure impact ETH’s price?
High sell volume pushes ETH lower, making it difficult for the price to recover without strong buy support.
Glossary
Whale: A large investor holding significant amounts of cryptocurrency.
Smart Money (SM): Investors known for strategic, profitable trades.
Small DEX Traders (SDTs): Retail traders engaging in decentralized exchange transactions.
Long/Short Ratio: A metric showing the proportion of long versus short positions in a market.
Resistance Levels: Price points where selling pressure typically increases, preventing further upward movement.
Psychological Levels: Round numbers or historical price points that influence trader behavior.
Buy Wall: A large buy order that supports price stability and prevents declines.
Reference:
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