Will the price of Ethereum grow as whale interest rises?
What impact did the Ethereum whales' buying spree have on the ETH price, particularly after it dropped below $3,400?
The Ethereum whales' buying spree had a positive impact on the ETH price after it dropped below $3,400. The whales accumulated over 700,000 ETH in the past three weeks, which indicated their confidence in the long-term potential of Ethereum. This significant accumulation of ETH by whales helped to stabilize the cryptocurrency's price and contributed to the price bouncing back after dropping below $3,400. At the time of writing, ETH was trading at $3,569.40, reflecting the positive influence of the whales' actions on the market sentiment and the price of ETH.
Despite the recent buying activity, why has the bearish trend in ETH prices not been broken?
Despite the recent buying activity by Ethereum whales, the bearish trend in ETH prices has not been broken due to a few factors. Firstly, the Chaikin Money Flow (CMF) has been declining, indicating that the money flowing into ETH has decreased, painting a bearish picture for ETH's future. Secondly, the Network Growth for ETH has declined, meaning the number of new addresses showing interest in ETH has significantly fallen over the last few days4. Additionally, the velocity of ETH has fallen, implying a decline in ETH trades. These factors contribute to the bearish trend not being broken despite the whale accumulation.
What does the Chaikin Money Flow (CMF) indicate about the current investment trend in Ethereum?
The Chaikin Money Flow (CMF) indicator is used to analyze the momentum and money flow of an asset, in this case, Ethereum (ETH). It combines price and volume to provide insights into market momentum and potential trend reversals2. A rising CMF suggests that buying pressure is increasing, while a falling CMF indicates selling pressure5.
In the context of the current investment trend in Ethereum, the CMF has been observed to be declining. This means that the money flowing into ETH has decreased, painting a bearish picture for ETH's future. The decline in CMF suggests that the buying pressure is weakening, and if this trend continues, it could lead to further price drops for Ethereum. However, it is essential to consider other indicators and market factors when analyzing the investment trend in Ethereum, as no single indicator can provide a complete picture of market dynamics4.