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The second largest altcoin in the crypto world, Ethereum, has experienced a significant price drop over the past 30 days. As of the time of writing, ETH is trading at $2,529 after a 1% increase in the last 24 hours, but it has seen a 2.52% decline over the past 7 days. This overall price decline has been reflected in the charts as whales have been offloading their Ethereum holdings over the past few weeks.
What Did Ethereum Do?
ETH whales have shown a decline in trading activities over the past 30 days, paralleling the double-digit drops in ETH prices. This can be understood from the decrease in the number of large transactions in the past month. According to data from IntoTheBlock, the daily number of ETH transactions valued between 1 million and 10 million dollars has decreased by 5% during this period. Meanwhile, the daily number of transactions exceeding 10 million dollars has decreased by 45%, as reflected in the charts.
On the other hand, the net flow of whales for Ethereum has decreased by 77%. Large holders, or whales, are defined as the group of investors who own more than 0.1% of the circulating supply of the asset. The net flow of large holders can be interpreted as the difference between the amount of ETH these whales bought and sold during a specific period.
When there is a decrease in the net flow metric of large holders, it is generally interpreted as whales reducing their holdings, which can often be seen as a precursor to a price drop. The decline in transactions carried out by whales can negatively impact market sentiment, often occurring before larger price drops.
ETH Price Prediction
Ethereum’s Moving Average Convergence Divergence (MACD) is moving towards a crossover where the MACD line (blue) falls below the signal line (orange), which is considered a bearish indicator. Such a crossover generally indicates a strengthening downtrend and reinforces the view among traders that it might be an important time to consider selling or taking profits.
An increase in selling pressure could lead to a price decline towards the $2,112 level seen on August 5th. On the other hand, if there is a reversal in market trend and an increase in buying activity, the price could potentially return to $2,867.
