What you need to know
Why has Ethereum’s price increased?
Since the first of October, Trend Research launched its second ETH sale, selling 102,355 ETH valued at $455M.
Ethereum can it survive despite the retailing and whale sales?
Yes, so far. ETH is still trading at around $4,590. ETH may retest the $4,673 level and then aim to reach $4.8K if bulls are able to absorb all of the selling pressure.
After the recent market recovery, Ethereum [ETH] The market has responded slowly with modest gains. Since reaching a low price of $3.8k ETH has been trading in a channel that is ascending, and reached a peak of $4619.
Ethereum is currently trading at $4,590. The daily chart shows a modest rise of 2.03%.
Why is ETH struggling so much?
Ethereum Whales – Offloading aggressively
AMBCrypto noted that Ethereum’s recent upswing has been hampered by the increasing sell pressure from major players.
Whales immediately jumped in after the market had recovered. The average order size for the spot showed Big Whale orders on three successive days.
In the week that ended on Sunday, Ethereum experienced four big whales orders. When whale orders are recorded, they often indicate increased activity from larger entities.
CryptoQuant
These orders, which are mostly selling ones, surprise many. EmberCN. According to the On-chain Monitor, Trend Research has resorted to aggressive sales, selling 41,421 Ethereum worth $189 Million on October 5th.
They have deposited 102.355 ETH, worth $455,000,000, since they began the second round of ETH sale-offs on October 1.
EmberCN Source:
Due to increased sales activity, Exchange Netflow for the altcoin has been positive two days in a row.
At the time of publication, Netflow was at 81.7k ETH. This indicates a higher level of inflows. It is a clear indication that there has been aggressive selling on spot.
CryptoQuant
When major players like Trend Research engage in aggressive sales, this signals a lack confidence in the market, and is therefore a clearly bearish indicator.
Retailers behaving in the same way
AMBCrypto analysed the Spot and Futures markets to determine that Retail traders were shifting their focus from the Spot.
CryptoQuant found that the Futures average order size showed too many retail orders. Over the past two days, Retail was dominant in Futures.
CryptoQuant
These small players tend to be active on the selling side. Futures Taker CVD from CryptoQuant showed that the data was pointing towards “Taker Sell Dominant.”
This metric turns red when traders close their businesses. It signals a trend of derisking among retail stores.
CryptoQuant
This market behaviour is a sign of a clear lack in confidence, and therefore a bearish market.
Can Ethereum defy the odds?
ETH remains resilient despite increased activity on the Futures markets from retailers and whales.
The market is still absorbing the sell-pressure, indicating that it has not yet been felt.
The Directional Movement Index of Ethereum (DMI), which measures the strength of upward momentum, has risen from 20 to 28, as at time for publication.
TradingView
The altcoin’s Relative Vigor Index, or RVGI, also increased to 0.22. This confirms the upward trend.
When momentum indicators form such a configuration, they usually indicate the potential for an uptrend to continue if conditions are favorable.
If ETH is able to continue the current trend, it can reclaim $4673 and then target $4.8k. ETH will reach $5k if it breaches this resistance level.
If sellers dominate the market (especially whales), ETH could retrace back to $4.415, with $4.248 serving as a key support.
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Source: ambcrypto.com
