- Whales sped up their Ethereum accumulation over the last month.
- ETH was down by 4% last week, and indicators were bearish.
Ethereum [ETH] has been witnessing a considerable surge in demand over the past few weeks. The token’s demand kept increasing even when its price peaked during the last bull rally. However, ETH witnessed a correction of late as its weekly chart turned red.
Ethereum’s demand is skyrocketing
IntoTheBlock posted a tweet on the 18th of November, which highlighted how Ethereum’s exchange outflow increased. For starters, exchange outflow is defined as the number of coins withdrawn from the exchange wallets.
Whenever the metric rises, it indicates that the demand is increasing. As per the tweet, ETH recorded $320 million in exchange outflows this week.
Additionally, the token also witnessed an exchange outflow of more than $1 billion over the last three weeks, suggesting that buying pressure was high.
ETH recorded $320M in exchange outflows this week, and over $1B through the last three weeks! pic.twitter.com/g1xJfh5p9U
— IntoTheBlock (@intotheblock) November 17, 2023
The fact that Ethereum’s demand was high was further proven when AMBCrypto checked Santiment’s chart. Our analysis found that ETH’s Supply on Exchanges dropped, while its Supply outside of Exchanges increased over the last month.
Not only retail investors, but whales were also actively trading ETH, as evident from the rise in its whale transaction count. Whales’ confidence in ETH was also high as the token’s supply held by top addresses gained upward momentum in the recent past.
Ethereum is witnessing a price correction
While the token’s demand increased over the past few weeks, ETH’s price plummeted as its value once again went under the $2,000 mark. As per CoinMarketCap, ETH was down by more than 4% in the last seven days.
At the time of writing, it was trading at $1,956.11 with a market capitalization of over $235 billion.
AMBCrypto reported earlier that there was a possibility of this price decline. In fact, ETH’s price can plummet further until it tests a key support level of $1,700. Once the token tests the support level, it can then initiate a fresh bull rally.
Therefore, this might be a good opportunity for investors to actually stockpile more tokens, as the chances of an uptrend in the weeks to follow seemed high.
AMBCrypto then checked ETH’s daily chart to better understand what to expect from the token in the short term. Ethereum’s MACD displayed a bearish crossover. The token’s Relative Strength Index (RSI) also registered a downtick and took a sideways path.
Read Ethereum’s [ETH] Price Prediction 2023-24
This hinted at a few more slow-moving days.
Nonetheless, the Chaikin Money Flow (CMF) remained bullish as it went up.