Ethereum’s Bullish Outlook as Whale Activity Decreases
On-chain metrics are indicating a positive outlook for Ethereum as there has been a decrease in whale activity surrounding the digital asset. Ethereum (ETH) experienced a 3.8% decline in value over the past 24 hours and is currently priced at $2,620. The market capitalization of ETH stands at $315 billion, while its daily trading volume has seen a 3% increase, reaching $15.6 billion.
Data from Santiment reveals that Ethereum’s total open interest has dropped from $5.28 billion on August 12 to $5.05 billion at the current reporting period. Typically, a decrease in an asset’s open interest would suggest lower price volatility due to a reduction in liquidations.
The market intelligence platform’s data also indicates that the total funding rates for ETH have fallen below zero for the first time since October 2023, currently resting at negative 0.0002%. Historically, a negative funding rate has often sparked a short-term bullish trend for Ethereum, despite market expectations of a price decline.
Santiment’s data further shows that the number of whale transactions involving at least $100,000 worth of ETH has been steadily declining over the past three days. The count has decreased from 5,371 transactions on August 12 to 4,346 unique transactions in the most recent day.
Additionally, the Ethereum Relative Strength Index suggests that the asset is slightly oversold, currently positioned around the 42 mark. It is crucial to consider that a continued sell-off could potentially lead to fear, uncertainty, and doubt (FUD), causing the ETH price to drop further.
The recent downturn in ETH’s price can be attributed to the Jump Trading selloff. The company has amassed over $64 million worth of ETH tokens from various platforms and appears poised for a significant sale.
In conclusion, while Ethereum has faced recent price declines, on-chain indicators point to a positive trend for the digital asset as whale activity diminishes. Traders and investors will closely monitor these metrics to gauge the future direction of Ethereum’s price movements.
