Ethereum

Flow

Impact

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Short-term traders are likely to exit their positions in case of a price bounce due to recent losses.</li>
 <li>The Ethereum [ETH] flow from exchanges has strayed deep into negative territory in June, leading to price drops.</li>
</ul>
<p>Despite the anticipation of a price bounce, many short-term traders have experienced losses and are prepared to exit their positions.</p>
<p>The $2.8k level may be revisited as a support level, but the ability of the bulls to maintain this is uncertain.</p>
<h2 id="ethereum-flow-and-price-trends">Ethereum Flow and Price Trends</h2>
<p>In a surprising turn, the flow of <a href="https://coineagle.com/price/ethereum/" rel="noopener noreferrer nofollow">Ethereum (ETH)</a> from exchanges plunged into negative territory in June. This did not result in the expected appreciation but instead led to a continuation of price drops.</p>
<p>The market was dominated by a bearish sentiment, as evidenced by the price drop below $3k. Despite the selling pressure behind ETH being relentless, this psychological level is expected to be fiercely contested.</p>
<h2 id="whale-accumulation-and-market-impact">Whale Accumulation and Market Impact</h2>
<p>Throughout June, the 7-day simple moving average of the exchange netflow remained significantly negative until the 28th. Over the past ten days, it has shifted into positive territory, coinciding with a sharp price drop in July.</p>
<p>The negative netflow indicated Ethereum tokens moving away from exchanges, suggesting accumulation. However, prices continued to decline.</p>
<p>Investors are hopeful that this could be the final downturn before a bullish trend emerges.</p>
<p>The supply distribution analysis revealed an increase in 10k-1M ETH holders since mid-May. Wallets holding 1k-10k ETH increased towards the end of June but have since dropped over the past week. This suggests that large whales with 10k+ ETH have accumulated, while most other wallets have decreased their holdings.</p>
<h2 id="price-relief-predictions">Price Relief Predictions</h2>
<p>According to the in/out of the money data, the $2850-$3000 zone was a strong support zone due to the number of holders. In the past three days, the price decline to $2.8k saw a bounce back to $3k, although it remains uncertain whether buyers can withstand the sellers’ onslaught.</p>
<p>At the current market price, 60.25% of the addresses were out of the money, suggesting that price bounces would likely be sold as holders look to break even, adding to the downward pressure.</p>
<p>The MobChart data highlighted large limit orders on the order books for Ethereum. The $3100 and $3170 levels have $3.7 million worth of limit orders. Above them, the $3220-$3250 region and $3500 have just over $5 million, marking these as strong short-term resistances.</p>
<p>The $2800 level has just under $10 million worth of buy orders and might be tested once again. Overall, the metrics show that in the short term, bears were in control.</p>
<p>The exchange outflow in June did little to halt the price decline, and the best bulls can hope for now is a period of consolidation around the psychological $3k support.</p>

Ethereum Plunge: Big Players Unable to Curb ETH’s Downturn Trend

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