Ethereum

Analyzing Ethereum’s recent price drop and $1B outflow

Some metrics are showing positive signals for Ethereum despite its recent decline.

Published

2 weeks ago

June 13, 2024

Edited By: Ann Maria Shibu

Ethereum recently saw over $1 billion outflow from exchanges.
ETH’s price has increased by over 1%

Ethereum [ETH] has been experiencing a decline in price over the last few days. However, despite these declines, the exchange outflow and accumulation metrics have been moving in opposite directions. What does this mean for the ETH trend?

Ethereum takes hits

An analysis of Ethereum’s price trend on a daily time frame showed that it experienced its biggest daily decline in over a month on 11th June.

The chart indicated that its price dropped by almost 4.6%, falling from over $3,600 to around $3,500. This decline marked the peak of the capitulation that had been occurring over the last seven days.

Source: TradingView

The analysis showed that these declines pushed Ethereum into a bear trend, as its Relative Strength Index (RSI) fell below the neutral line. As of this writing, the RSI remained below the neutral line.

Additionally, the price has seen a slight recovery with an increase of over 1%, trading at around $3,500. The short moving average (yellow line) continued to provide support at around $3,300.

Whales continue to accumulate Ethereum

An analysis of whale addresses on Santiment showed that these addresses have continued to accumulate as Ethereum’s price declined.

The chart indicated that the number of addresses holding 10,000 to 100,000 ETH rose from 1,040 to 1,049 as of this writing.

Source: Santiment

Additionally, the data revealed that whales had bought over 240,000 ETH, worth around $840 million, since the decline started.

Ethereum sees massive outflow

Additionally, the volume of outflows saw a recent spike, particularly from Coinbase, according to CryptoQuant data.

Data showed that Coinbase experienced its highest outflow of the year, with over 336,000 ETH leaving the exchange. The value of this outflow was approximately $1 billion.