Ethereum continues to sustain above $2K mark after the ETF proposal by Blackrock but it is starting to show bearish signs due to the decline in its price but manages to hold strong above $2K.
The largest asset manager, Blackrock with $9.4 trillion in assets under management, recently registered an iShares ETH Trust on Nov 9th,2023. After that, ETH has surged 9%, surpassing the $2,000 threshold.
Santiment data reveals a 25% increase in whale transactions which involve at least $100,000 worth of ETH, over the past 24 hours. These transactions surged from 2,151 to 2,678 in the past day.
According to a report on Nov 13, whales have been accumulating over $58 million worth of various altcoins, including
- Aave (AAVE)
- Ethereum (ETH)
- Arbitrum (ARB)
- Pepe (PEPE)
and others, in the past week.
Regardless of the surge in whale activity, Santiment’s data indicates that Ethereum’s price-daily active addresses (DAA) divergence has taken a significant downturn, reaching negative 45.17%. divergence has taken a significant downturn, reaching negative 45.17%.
A divergence below zero is considered a sell signal, suggesting the potential market manipulation by large whales.
Total Open Interest (OPI)
Contrary to the increased whale activity, the total open interest (OI) has decreased from $4.15 billion on Nov. 10 to $3.85 billion.
Additionally, ETH’s Binance funding rate is currently at 0.02%, indicating the dominance of short position holders until further market movements.
ETH has seen a 0.7% decrease in the past 24 hours, trading at $2,034, with a market cap of $244.5 billion and a 24-hour trading volume of $13.22 billion.
The analysis of ETH’s daily chart reveals a breakout above the 100-day and 200-day moving averages around $1,700, driving a significant bullish surge toward the critical $2,000 resistance.
Regardless, a long-term rising wedge pattern is seen, and the price is nearing the upper trendline of the wedge. If buyers manage to surpass the $2,000 resistance and the wedge boundary, a mid-term uptrend could follow. However, due to the existing supply at this resistance level, a temporary rejection with consolidation near the moving averages is more predictable.
Keeping in view the current market scenario, the likelihood of an extended consolidation correction phase in the short term is high. ETH’s recent rally toward $2,000 suggests robust upward momentum, but assessing sentiment in the futures market becomes crucial.
Funding rates, reflecting trader sentiment in perpetual futures, have surged alongside its price, indicating widespread optimism.
However, excessive bullish sentiment poses a risk of price contraction, potential liquidations, and a long-squeeze event, catching traders off guard and leading to a sudden rejection of Ethereum.
To conclude, current market movements in Ethereum underline the prevailing influence of buyers, directing the price into a strong upward trend and bringing it to the critical resistance level of $2,000. Despite that, there is a possibility of a brief consolidation period occurring around this pivotal resistance in the days ahead.
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