ETH dropped below $2,000 again after remaining above for two days.
Ethereum buyers were aggressively buying, with a negative netflow hitting 150,000 ETH.
Over the past three days, Ethereum (ETH) saw a shift in fortunes, reclaiming $2,000. Amid this trend reversal, there has been increased activity from the buy side.
According to CryptoQuant, Ethereum experienced a negative netflow of over 150,000 ETH on derivative exchanges. This large outflow indicates a reduction in selling pressure as investors move ETH to cold storage or DeFi. Hence, the significant outflow reflects increased accumulation by large entities, signaling bullish sentiment from these investors.
The accumulation by large entities is further evidenced by recent whale-buying activity. According to Onchain Lens, a whale withdrew 8,313 ETH worth $16.46 million from Binance after two months of inactivity. Following this transaction, the whale now holds 11,197 ETH worth $22.17 million.
When whales begin accumulating, it signals a strong bullish sentiment, implying they believe current prices are undervalued and likely to rebound soon. Sustained accumulation by smart money often boosts market confidence, attracting increased demand from speculative buyers.
What it Means for ETH
Despite the rising demand from large holders, ETH prices continue to struggle. In fact, on daily charts, ETH has dropped below $2,000 again, hitting a low of $1,963. This suggests other market participants remain bearish and are less optimistic about potential price recovery.
AMBCrypto observed bearish market sentiment as Ethereum’s Fund Market Premium stayed negative throughout the past week. A sustained negative premium indicates that investors are closing positions faster than new buyers are entering, demonstrating a preference to sell at a discount rather than hold. While buyers are participating, seller activity remains notably high.
Bearish sentiments are particularly pronounced among U.S. institutional investors. The Coinbase premium index, currently at -0.05, indicates active selling by Coinbase investors, reflecting a significant lack of market confidence. This sentiment places Ethereum under substantial downward pressure.
Despite increased negative netflows and whale accumulation, Ethereum’s demand remains weak. The ongoing tug-of-war between buyers and sellers may keep ETH prices confined to a consolidation range.
Under current conditions, Ethereum is likely to trade between $1,862 and $2,100.
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