Key Points
- Ethereum’s price surpassed the $3,700 mark, with indicators suggesting a potential price correction.
- Despite a slight price drop, whale activity around Ethereum remains high.
Ethereum’s price exceeded a crucial threshold, eclipsing the $3,700 mark. Although the token was experiencing a bull rally, there were indications that this trend might not last, with some suggesting that a price correction could be on the horizon.
Even though the price of the token experienced a minor decrease, the level of whale activity surrounding it remained significant. Recent data showed an increase in whale transactions involving the token, suggesting that these large-scale investors continue to accumulate Ethereum.
Potential Price Correction
Despite high whale activity, certain metrics pointed towards a possible price correction. An examination of data from CryptoQuant revealed that Ethereum’s net deposits on exchanges were higher than the 7-day average, which could indicate increased selling pressure. The Korea premium also turned red, suggesting a dominant selling sentiment among Korean investors.
The derivatives market also appeared bearish, with the taker buy/sell ratio turning red. This implies that futures investors were selling Ethereum. A review of the liquidation heatmap indicated that Ethereum has strong support near the $3.3k mark. Consequently, if a price correction occurs, the price could drop to this level before sparking another bull rally.
Price Prediction Analysis
An examination of Ethereum’s daily chart suggested a high possibility of a price correction. The token’s Relative Strength Index (RSI) entered the overbought zone, and its Chaikin Money Flow (CMF) also registered a downtick, both of which could indicate a potential price decline. However, the MACD remained bullish on Ethereum as it displayed a bullish upperhand in the market.
