- Hong Kong-based Metalpha offloaded over 33,589 ETH worth $77.55 million to Binance in the past four days.
Based on the historical price momentum, there is a high possibility that ETH could soar by 23% to the $2,700 level.
As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull and bear markets. The recent selling spree of Ethereum [ETH] by institutions and whales has caught my attention, especially given the significant dump by Metalpha, a Hong Kong asset management giant.
Even though the market seems to be bouncing back, there’s an indication that Ethereum [ETH] might experience a substantial drop in value. At the moment, both individual investors and major institutions appear pessimistic and are actively selling off their Ethereum holdings on trading platforms.
Institutional selling spree
On September 10th, the on-chain analysis firm Lookonchain pointed out on their platform (previously Twitter) that Metalpha, a significant asset management company based in Hong Kong, transferred approximately 10,000 Ether, valued at around $23.45 million, to Binance [BNB].
The firm offloaded over 33,589 ETH worth $77.55 million to Binance in the past four days.
But despite the notable dump, the asset manager still held a significant 51,300 ETH, worth $120 million, at press time.
Are whales moving away from ETH?
Lately, a well-known cryptocurrency specialist published a piece on X, indicating that large Ethereum investors (whales) have ceased amassing Ether (ETH) since around mid-July. Instead, they appear to be either offloading or dispersing their ETH holdings among others.
This indicates a lack of interest from investors and whales in the past few weeks.
If whales and institutions persistently unload large amounts of ETH, there’s a strong likelihood it might lead to a major market sell-off in the near future.
Key levels to watch for
AMBCrypto’s look at Ethereum showed encouraging signs.
Significantly, the leading altcoin could potentially surge as a result of the ongoing bullish trend indicated by its Relative Strength Index (RSI). Moreover, it has managed to hold steady at the significant $2,150 price point.
According to past trends in ETH‘s price movement, when it hits a specific support level, a significant price increase of more than 23% typically follows. It appears that, similarly, some anticipate ETH could reach as high as $2,700 this time around.
This bullish perspective is valid as long as Ethereum remains above the significant support threshold of approximately $2,150.
Bullish on-chain data
Data stored on the blockchain aligns with a positive outlook as well. At the present moment, Coinglass’s Ethereum Long/Short Ratio Graph shows a value of +1.424, which is the highest it’s been in the last week. This suggests that traders are generally optimistic about the market.
Furthermore, the Open Interest for Ethereum Futures contracts grew by 2.5%, suggesting that traders might be taking on more long positions, implying a bullish sentiment.
In simpler terms, when the Long/Short Ratio is high (more traders are holding long positions compared to short ones) and Open Interest is increasing (more contracts are being traded), it could indicate favorable buying prospects for Ethereum (ETH). At this moment, approximately 58.75% of top ETH traders have opted for long positions, while around 41.25% have chosen short positions.
This suggested that bulls were dominating the asset, and have the potential to liquidate short positions.
Read Ethereum’s [ETH] Price Prediction 2024–2025
Currently, Ethereum (ETH) is being exchanged at around $2,350 per token, marking an increase of approximately 2.35% in its value within the past day.
During the same timeframe, the trading volume grew by approximately 14%, indicating that more traders are engaging as the market recovers.
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2024-09-11 11:36