Ethereum (ETH) has taken a hit in recent days, with its price experiencing its biggest daily decline in over a month on June 11th. This drop pushed the price below $3,600 and into a technical “bear trend” according to the Relative Strength Index (RSI). Despite this, some on-chain metrics suggest a potentially bullish undercurrent.
Chart analysis reveals a 4.6% drop for Ethereum on June 11th, marking the peak of a week-long price decline. This brought the price down to around $3,500 and pushed the RSI below the neutral line, indicating bearish momentum. However, a slight recovery of over 1% has been observed at the time of writing, with the price hovering around $3,500 and the short-term moving average offering support at $3,300.
Whales Accumulate Despite Price Dip
Interestingly, while the price dipped, on-chain data from Santiment paints a different picture. The number of whale addresses (holding 10,000 to 100,000 ETH) has actually increased from 1,040 to 1,049. Additionally, these whales have reportedly bought over 240,000 ETH (worth around $840 million) since the decline began. This suggests large investors might see the current price as an attractive entry point.
Also Read: Ethereum ETF Hype! SHIB, LINK, ETH Exchange Supply Drain – Get Ready For Liftoff?
Coinbase Sees Massive Outflow, But What Does It Mean?
CryptoQuant data reveals a recent surge in exchange outflows, particularly from Coinbase. The exchange reportedly experienced its highest outflow of the year on June 11th, with over 336,000 ETH (roughly $1 billion) leaving the platform. Overall, netflow for Ethereum has been negative in recent days, indicating more outflows than inflows.
While these outflows might initially suggest investor fear, they could also represent a transfer of ETH from exchanges to personal wallets for long-term holding. This aligns with the observed whale accumulation behavior.
Is This a Buying Opportunity for Ethereum?
The contrasting price action and on-chain metrics create a complex picture. While the price decline and negative netflow suggest potential bearishness, whale accumulation and exchange outflows hint at a potential long-term bullish sentiment. Investors should conduct thorough research and consider their risk tolerance before making any investment decisions in the volatile cryptocurrency market. This situation could be a buying opportunity for some, but caution is always advised.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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