Ethereum Stuck Between Retail Sell-Off And Whale Accumulation, Analyst Explains
Ethereum (ETH) is experiencing mixed market signals as it approaches the $2,000 mark. Retail investors are sending ETH to exchanges like Binance, indicating potential selling pressure, while large investors are withdrawing ETH, suggesting accumulation and long-term confidence. Short-term indicators show weakness and indecision, while longer-term metrics indicate resilience. Mean exchange inflows have risen, reflecting increased sell pressure from retail traders, similar to patterns seen before price declines in 2022-2023. Conversely, rising mean exchange outflows are linked to whale wallets, indicating institutional accumulation. Funding rates are neutral, with potential for a short squeeze if conditions change. The taker buy/sell ratio is stabilizing, hinting at exhausted sellers. Despite a 34.3% decline over the past year, technical indicators suggest a possible bullish trend reversal, including a recent golden cross on the daily chart. However, predictions remain uncertain, with some forecasts suggesting a potential drop to $1,500. Currently, ETH trades at $1,966, up 7.8% in the last 24 hours.
