Key Points
- Ethereum’s exchange reserve experienced a significant drop on May 30th.
- Despite the decline, there has been an increase in Ethereum addresses holding more than 10,000 ETH.
Fluctuations in Ethereum’s Market
Ethereum, the king of altcoins, experienced a price surge last week, exceeding $3.9k. However, it was unable to maintain this momentum and experienced a drop soon after.
This fluctuation provided an opportunity for whales to accumulate more Ethereum.
Ethereum’s Market Indicators
Despite the approval of the ETH ETF, Ethereum did not experience significant growth last week. According to CoinMarketCap, Ethereum was down by over 1% in the past seven days, trading at $3,759.66 with a market capitalization exceeding $451 billion.
The high price volatility of the token allowed whales to make their move. Crypto analyst Ali noted an increase in Ethereum addresses holding more than 10,000 ETH, indicating a shift from distribution to accumulation.
Data from Glassnode suggested a rise in accumulation as Ethereum’s balance on exchanges witnessed a major decline on May 30th. However, analysis of data from CryptoQuant revealed a different story, indicating a rise in selling pressure.
The Coinbase Premium for Ethereum was in the red, suggesting a dominant selling sentiment among US investors. This could be due to Ethereum being in an overbought position, as indicated by its Relative Strength Index (RSI) and stochastic.
Technical indicators such as the MACD and the Money Flow Index (MFI) pointed towards a possible bearish crossover and a slight downtick respectively. However, the Chaikin Money Flow (CMF) looked bullish, potentially allowing Ethereum to break above its resistance at $3.789k sooner than expected.
