.jpg)
- Ethereum exchange reserves fell sharply on May 30.
- Metrics indicate that ETH was in overbought mode.
Ethereum [ETH] Enthusiasts were excited last week when the price of the altcoin king surpassed $3.9K once again. However, ETH was unable to maintain its momentum and quickly fell from this level. Meanwhile, whales seized the opportunity to store more Ethereum.
Interest in Ethereum is growing
ETH had a volatile ride last week as it managed to cross $3.9K on May 27. But the bears arrived quickly as their value plummeted.
It was interesting to note that the ETH ETF approval was unable to drive significant growth for the coin over the past week.
according to CoinMarketCapETH has fallen by more than 1% in the past seven days. At the time of writing, the token is trading at $3,759.66 with a market capitalization of over $451 billion.
While the token’s price volatility remained high, whales made their move.
aLee, a well-known cryptocurrency analyst, recently published an article tweet Highlighting that there has been a significant increase in Ethereum addresses holding more than 10,000 ETH.
This increase in the number of addresses indicates that the whales were moving from the distribution phase to the accumulation phase.
AMBCrypto’s look at Glassnode data pointed to another metric indicating an increase in accumulation. The balance of Ethereum on exchanges saw a significant decline on May 30, indicating rising buying pressure.
Source: Glassnode
The other side of the story
Although the above data suggested that investors were buying ETH, AMBCrypto’s outlook on CryptoQuant Data A different story revealed.
According to our analysis, the net deposit of Ethereum on exchanges was high compared to the average of the past seven days, indicating high selling pressure.
Furthermore, Coinbase Premium for ETH was in the red. This clearly means that selling sentiment was dominant among US investors.
The possible reason behind this could be the peak of ETH buying. Both the Relative Strength Index (RSI) and Stochastic for ETH were in overbought positions.
Source: Cryptoquant
AMBCrypto then analyzed the daily chart of Ethereum to see how this change in buying and selling pressure might impact its price in the coming days.
The technical indicator MACD has shown the possibility of a bearish crossover. The Money Flow Index (MFI) registered a slight decline.
According to the Bollinger Bands indicator, ETH price was in a highly volatile zone and was still settling well above the 20-day simple moving average (SMA).
Is your wallet green? Check the Ethereum profit calculator
Therefore, if the price decline continues, ETH may first fall to the 20-day simple moving average before rebounding.
However, Chaikin Cash Flow (CMF) looked bullish as it headed north. This could allow ETH to break through the resistance level at $3,789K sooner than expected.
Source: Trading View
