Key Points
- Large holder outflows of Ethereum have outperformed inflows, indicating potential sell pressure.
- Ethereum’s bearish divergence with the RSI suggests a possible pullback.
Ethereum holders have been hopeful for a rally above $4,000 by the end of 2024. However, recent signs indicate a potential pullback may be on the horizon.
Large Holder Flows and Whale Activity
Despite Ethereum maintaining its bullish momentum from November, the sell pressure from large holders is increasing. This is not unexpected as the previously strong momentum appears to be slowing down.
In addition, data from IntoTheBlock shows a peak in large holder outflows at 647,220 ETH on December 3rd. This indicates more sell pressure from whales than demand, suggesting a bearish momentum.
ETF Inflows and Spot Flows
Ethereum ETF inflows have been bullish this week but show a considerable decline compared to the previous week. On December 3rd, Ethereum ETFs had positive flows of $132.6 million, up from $24.2 million the day before. However, these inflows are significantly lower than the $332.9 million high from the previous week.
While this may suggest a decrease in demand, it’s important to note that demand can fluctuate daily. Despite this, the data does highlight a slowdown in bullish demand for Ethereum over the weekend.
On the other hand, spot flows tell a different story. They peaked at $285 million in the last 24 hours and $252.69 million on November 3rd. These positive spot flows align with Ethereum’s price action, contributing to its recovery in the last two days.
At the time of writing, Ethereum was trading at $3,731, recovering from the initial sell pressure observed at the beginning of the week. However, a bearish divergence with the RSI suggests a possible pullback, potentially causing the price to dip to the recent support level of $3050.
