CryptoSlate reports:
Despite a drop in ETH’s price, whales have accumulated tokens worth millions of dollars. Few indicators suggest ETH is undervalued.
As the cryptocurrency market faced a downturn last week, Ethereum (ETH), the king of altcoins, also became a victim of significant price adjustments. With prices falling, confidence in the token may have waned for many. However, a quick shift in the daily chart of ETH has seen trends change over the past few hours.
High volatility of Ethereum
According to data from CoinMarketCap, ETH has dropped over 12% in just seven days. Evaluation by IntoTheBlock data on AMBCrypto also indicates a decrease in average ETH balances, attributed to the token’s double-digit price drop.
Simultaneously, Lookonchain tweeted an interesting development. Correspondingly, as ETH’s value declined, several whales began selling ETH. Specifically, three Ethereum whales deposited 28,558 ETH into Binance, valued at over $82.2 million. However, shortly after, a reversal in trend appeared on the charts for ETH.
Indeed, altcoin prices have risen nearly 3% in the past 24 hours alone. At the time of writing, ETH is trading at $2967.81 with a market cap exceeding $356 billion.
However, despite price increases, trading volume has decreased by double digits, suggesting ETH may not sustain its bullish momentum long-term.
Will ETH’s bull market continue?
Alongside trading volume, several other indicators appear quite pessimistic.
For instance, despite price increases, selling pressure on the token remains high. This is evident from CryptoQuant data, which also highlights an increase in ETH outflows. In essence, some investors have opted to sell off.
Nevertheless, other indicators support the possibility of a continued upward trend.
For example, ETH’s funding rate has been consistently rising, indicating dominance by long traders willing to pay shorts. According to CryptoQuant, its Relative Strength Index (RSI) is also in the oversold territory. This might help increase buying pressure in the coming days, potentially leading to a rise in prices on the charts.
Furthermore, analysis by AMBCrypto using Glassnode data shows a sharp decline in Ethereum’s NVT ratio. This decrease suggests the asset is undervalued, typically followed by price increases.
Next, we plan to examine the daily chart of ETH for better insights into future expectations. We find ETH’s price touching the lower limit of the Bollinger Bands, highlighting the potential for a rebound.
Read Ethereum (ETH) price predictions for 2024-25
Additionally, its Money Flow Index (MFI) is also poised to enter oversold territory.
However, the Chaikin Money Flow (CMF) appears bearish, standing at -0.09 as of the time of publication.