Ethereum

2024

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<ul>
 <li>ETH was down by more than 1.5% in the last seven days.&nbsp;</li>
 <li style="font-weight: 400;">If ETH initiates a bull rally, it might face resistance near $2,300 and $2,400.</li>
</ul>
The year 2024 began on a sweet note as <a href="https://ambcrypto.com/search/ethereum" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Ethereum’s [ETH]</a> value surged above $2,400. However, the king of altcoins witnessed a price correction, pushing its value under $2,300 once again. 
While this happened, an interesting whale activity occured.&nbsp;
<h4>Ethereum’s chart turns red</h4>
After a comfortable beginning in 2024, ETH fell victim to a price correction on the 3rd of January. Because of the price correction, ETH’s value plummeted by more than 1.6% in the last seven days. 
According to <a href="https://coinmarketcap.com/currencies/ethereum/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">CoinMarketCap</a>, at the time of writing, Ethereum was trading at $2,243.76 with a market capitalization of over $269 billion. Amidst this, Lookonchain recently posted a tweet highlighting an intriguing development.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 It seems that <a href="https://twitter.com/hashtag/Paradigm?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Paradigm</a> deposited 6,500 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($14.67M) into <a href="https://twitter.com/hashtag/Coinbase?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Coinbase</a> 2 hours ago.<a href="https://twitter.com/hashtag/Paradigm?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Paradigm</a> is very smart, accumulating <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$ETH</a> in bear markets and selling <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$ETH</a> in bull markets.<a href="https://t.co/TF3lEGhJvZ" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">https://t.co/TF3lEGhJvZ</a> <a href="https://t.co/XI5LV075iH" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/XI5LV075iH</a>
 — Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1743461649439506763?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">January 6, 2024</a>
</blockquote>
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As per the tweet, Paradigm deposited 6,500 ETH on Coinbase, which was worth more than $14.6 million. If historical data is to be considered, Paradigm has always bought ETH during bear markets and sold ETH in bull markets to earn profits. 
Therefore, since Paradigm dumped ETH, does this mean a larger sell-off is on its way?
<h4>Are whales selling Ethereum?</h4>
AMBCrypto planned to check Ethereum’s whale activity to see how they were behaving. Notably, Ali, a popular crypto analyst, posted a tweet on the 6th of January, which revealed a promising development. 
As per the tweet, in the past month, Ethereum whales bought over 410,000 <a href="https://ambcrypto.com/ethereum-heres-why-it-might-take-longer-to-withdraw-your-staked-eth/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">ETH</a>, worth nearly $1 billion. This showed that the whales were stockpiling ETH in hopes of a bull rally.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 In the past month, <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Ethereum</a> whales bought over 410,000 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>, worth nearly $1 billion! <a href="https://t.co/1gGguoEypx" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/1gGguoEypx</a>
 — Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1743678525129769247?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">January 6, 2024</a>
</blockquote>
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Our analysis of Santiment’s data painted a similar picture. AMBCrypto found that whale activity around the token remained high, as evidenced by the spike in its Whale Transaction Count. 
Its supply held by top addresses also increased last week, meaning that whales were accumulating more ETH until press time.
<div id="attachment_362452" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.37.48-07-Jan-2024.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362452" decoding="async" class="wp-image-362452 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.37.48-07-Jan-2024.png" alt="" width="3840" height="1300" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.37.48-07-Jan-2024.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.37.48-07-Jan-2024-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.37.48-07-Jan-2024-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.37.48-07-Jan-2024-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.37.48-07-Jan-2024-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.37.48-07-Jan-2024-2048x693.png 2048w" sizes="(max-width: 3840px) 100vw, 3840px"></a>
 Source: Santiment
</div>
Not only the whales, but the market at large also seemed to have been buying Ethereum. The token’s Supply on Exchanges dropped last week, while its Supply outside of Exchanges increased. 
Also, AMBCrypto’s analysis of CryptoQuant’s <a href="https://cryptoquant.com/asset/eth/summary" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">data</a> showed that ETH’s net deposit on exchanges was low compared to the last seven-day average, clearly reflecting high buying pressure. 
To top it off, ETH’s Coinbase Premium was in the green, which meant that buying sentiment was dominant among US investors at press time. 
It was interesting to note that on the one hand, buying pressure on ETH was increasing, while on the other hand, the blockchain’s network activity declined. 
AMBCrypto had earlier <a href="https://ambcrypto.com/bnb-chain-booms-with-user-activity-while-ethereum-falls-behind/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">reported</a> that <a href="https://ambcrypto.com/search/bnb" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">BNB Chain [BNB]</a> has surpassed Ethereum in terms of user activity over the past month. As per the data, only 1.28 million active addresses transacted on Ethereum, witnessing a 13% drop in user activity.
<div id="attachment_362454" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-ETH-1.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362454" decoding="async" class="wp-image-362454 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-ETH-1.png" alt="" width="607" height="421" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-ETH-1.png 607w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-ETH-1-300x208.png 300w" sizes="(max-width: 607px) 100vw, 607px"></a>
 Source: CryptoQuant
</div>
<h4>Will high buying pressure initiate a bull rally?</h4>
While buying pressure increased and prices sank, ETH’s derivatives market metrics somewhat turned bullish. For example, ETH’s Open Interest dropped along with its price. Such instances indicate an increased chance of a trend reversal. 
Its BitMEX Funding Rate also declined last week, and market sentiment around the token remained bearish, as shown by the dip in Ethereum’s Weighted Sentiment.
<div id="attachment_362455" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.44.26-07-Jan-2024.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362455" decoding="async" class="wp-image-362455 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.44.26-07-Jan-2024.png" alt="" width="3840" height="1300" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.44.26-07-Jan-2024.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.44.26-07-Jan-2024-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.44.26-07-Jan-2024-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.44.26-07-Jan-2024-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.44.26-07-Jan-2024-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Ethereum-ETH-11.44.26-07-Jan-2024-2048x693.png 2048w" sizes="(max-width: 3840px) 100vw, 3840px"></a>
 Source: Santiment
</div>
If we consider that ETH will soon begin a bull rally, it would still have quite a few barriers to overcome to skyrocket its price. To find that, AMBCrypto took a closer look at ETH’s liquidation heatmap.
Read <a href="https://ambcrypto.com/predictions/ethereum-price-prediction" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Ethereum’s [ETH] Price Prediction</a> 2023-24
Our analysis found that if a bull run is bound to happen, ETH would face a strong resistance level near the $2,300 mark. And if it goes above that level, then ETH’s would face its next barrier at $2,400. 
The last time <a href="https://ambcrypto.com/ethereum-on-track-for-dencun-upgrade-despite-market-volatility/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">ETH</a>’s price touched those levels, its liquidation spiked sharply.
<div id="attachment_362456" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/newplot-1-2.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362456" decoding="async" class="wp-image-362456 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/newplot-1-2.png" alt="" width="1482" height="736" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/newplot-1-2.png 1482w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/newplot-1-2-300x149.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/newplot-1-2-1024x509.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/newplot-1-2-768x381.png 768w" sizes="(max-width: 1482px) 100vw, 1482px"></a>
 Source: Hyblock Capital
</div>

Ethereum: Sell-off prediction looms as price falls 1.5% in 7 days

AMBCrypto

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