- ETH was down more than 16% over the week.
- Selling pressure was dominant, with no signs of whale accumulation.
The world’s second-largest cryptocurrency, Ethereum [ETH], was witnessing intense sell-offs and seemed to be in danger of sinking below $3,000.
According to CoinMarketCap, the leading digital asset dipped 5.43% in the last 24 hours, and more than 16% over the week, owing to a mix of crypto-specific, macroeconomic, and geopolitical triggers.
The On Balance Volume (OBV) indicator, that measures buying and selling pressure, was falling faster than ETH’s price. This meant that there was a higher likelihood of further downsides in the days to come.
Source: Trading View
Watch out for these levels
In a downtrend, strong support levels become an area of keen interest for market traders.
Prominent on-chain analyst Ali Martinez flagged the zone between $2,000 and $2,400 as “critical” for nearly 9.37 million addresses bought 53 million ETH at these price levels.
This suggested that if the slide continues, Ether may hit a bottom at the aforementioned level and then bounce.
What are ETH whales up to?
While discussions on corrections and rebounds happen, whales were quietly snapping up ETH at lowered prices.
According to on-chain tracking platform Lookonchain, two whales were seen accumulating a combined amount of more than 15,000 ETH coins Monday, worth nearly $70 million at prevailing market prices.
Interestingly, one of the whales staked their share of the withdrawn amount, around 10,000 ETH, into decentralized finance (DeFi) protocols like Pendle Finance and Renzo.
AMBCrypto took a bird’s eye of the ETH market using Santiment, and noticed a drop in large whale transactions in the last few days.
Is your portfolio green? Check out the ETH Profit Calculator
Moreover, holdings of major whale cohorts dipped significantly during this time, suggesting that most investors were transferring their ETH to the aforementioned protocols.
Source: Santiment
Meanwhile, the Ethereum Fear and Greed Index flashed a neutral market signal, implying a balance between bullish and bearish sentiments.
