Ethereum [ETH]: Do not get fazed by the recent rally because…
? #Ethereum saw a considerable amount of token shuffling between whale addresses on Thursday, which occurred right at a local top. Seven hours after the move of 320,000 $ETH, the price touched down to $1,260, and then bounced considerably ever since. https://t.co/X1l68N0DhJ pic.twitter.com/TiumtitbDA
— Santiment (@santimentfeed) October 24, 2022
Data from Santiment revealed that the token shuffling between whale addresses occurred when the alt touched its weekly price bottom and when it logged its largest spike in transaction volume.
Following the movement of 320,000 ETH coins between these addresses, ETH’s price immediately plunged below the $1300 price region to a low of $1,260 and “then bounced considerably ever since,” Santiment found.
Per data from CoinMarketCap, the alt’s price has since gone up by 5%. As of this writing, ETH exchanged hands at $1,348.96. Interestingly, in addition to a rally in its price, the movement of ETH coins between whale addresses led to a surge in the asset’s market dominance, data from LunarCrush showed.
According to the cryptocurrency social analytics platform,
“Yesterday #Ethereum had a strong weekly close, and $ETH’s market dominance measured hourly was hovering above 17.2%, significantly above the 7-day average.”
The nays have it
Despite the notable surge in price and market dominance in the past few days, a look at the price movement on a daily chart revealed that ETH sellers still controlled the market. This was confirmed by the Exponential Moving Average (EMA) position.
At the time of writing, the 20 EMA (blue) was below the 50 EMA (green) line, depicting the severity of the ongoing bear action.
Also, ETH’s Directional Movement Index (DMI) revealed that severe distribution of the asset had been underway since mid-September. Still, ongoing at press time, ETH sellers toppled the buyers on a daily chart.
As of this writing, the sellers’ strength (red) at 21.44 was solidly above the buyers’ (green) at 18.64.
While ETH’s Relative Strength Index rested above the neutral region, it has remained flat since 23 October, showing that the market has since traded sideways.
At press time, this stood at 52. Positioned slightly below the 50-neutral spot, the Money Flow Index was pegged at 49.
In addition, the dynamic line of ETH’s Chaikin Money Flow rested on the center line at 0.0 in a downtrend. Should the buyers fail to initiate a correction, any further descent of the CMF below the center line would indicate a surge in selling pressure.