CoinJiew.com reported:
The price trend of Ethereum has turned bullish in the past 24 hours. Selling pressure on Ethereum increased last week.
The behavior of whales has a significant impact on the prices of cryptocurrencies, including top currencies like Ethereum. The latest analysis correctly pointed out an interesting development. Additionally, a key indicator for ETH suggests that investors may soon see an increase in price.
The Connection Between Ethereum and Bitmex
CryptoQuant analyst and author BlitzzTrading recently published an analysis article highlighting a unique trend. According to the analysis, as Ethereum reserves sharply increase, the price of ETH noticeably decreases.
For example, on September 28, Bitmex’s Ethereum reserves dropped significantly, and subsequently, the ETH price increased.
This correlation between ETH and Bitmex implies that when Ethereum whales on Bitmex purchase, we observe a decrease in reserves.
Conversely, when they sell, we see an increase in Bitmex reserves. As of the time of writing, Bitmex’s ETH reserves remain relatively low.
Ethereum at the Market Bottom
Meanwhile, the price of Ethereum has finally turned bullish after several days of adjustments. According to CoinMarketCap data, the price of ETH has risen by nearly 2% in the past 24 hours.
At the time of writing, ETH is trading at $3,428.69 with a market capitalization of over $412 billion. AMBCrypto’s analysis of Glassnode data also pointed out an optimistic indicator.
The Pi Cycle Top indicator shows that the price of ETH has bottomed out, implying a rebound in the bull market. If this is indeed the case, ETH may soon reach $5,000.
Furthermore, at the time of writing, Ethereum’s Fear and Greed Index stands at 32%, indicating a “fear” stage in the market. As long as the indicator reaches this level, the likelihood of price increase is high.
However, data from Santiment shows significant selling pressure on the token. With an increase in ETH supply on exchanges, this seems to be the case.
Additionally, its inflow from exchanges has surged, indicating an increase in selling pressure that may limit the price increase of ETH.
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Alongside the aforementioned indicators, some market indicators also hold a bearish view on the token. For instance, Ethereum’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) are both hovering near their respective neutral points.
Nevertheless, the Money Flow Index (MFI) looks optimistic as it moves upwards, indicating a sustained price increase.
