Key Insights into Ethereum’s Current Market Trends
Who is driving the recent selling wave?
SharpLink, notable for being the first publicly listed company whose primary asset is Ethereum.
What is the current landscape for Spot ETFs?
U.S. Ethereum Spot ETFs have experienced outflows totaling $1.022 billion in just the last week.
Ethereum (ETH) finds itself under significant selling pressure, highlighted by SharpLink’s recent divestment of its holdings. This trend coincides with consecutive outflows from U.S. Ethereum Spot ETFs and an increase in reserves on exchanges. As of November, ETH has already lost over 20% of its value and further declines might be looming.
Recent reports from Onchain Lens reveal that SharpLink has offloaded a staggering 10,975 ETH, amounting to approximately $33.54 million, on the Galaxy Digital OTC exchange.
SharpLink’s asset offloading has adversely affected Ethereum’s market structure, as illustrated by the sharp ETF outflows and the rising reserves of ETH across exchanges.
Bearish Signals Emerge from On-chain Metrics
Data from SoSoValue indicates that U.S. Ethereum Spot ETFs have observed outflows for seven consecutive days.
During this period, a staggering $1.022 billion has exited these funds, suggesting a possible decrease in interest among American investors, which may further underpin a pessimistic market outlook.
Source: SoSoValue
Additionally, a broader trend of selling among crypto participants is evident. CryptoQuant’s data indicates that over the past week, Ethereum reserves across all exchanges have surged, hinting at continued selling by both investors and long-term holders.
Specifically, a total of 152,426 ETH was sold off within the last week. The impact of this activity is visible in the price action, with ETH now trading below the $2,900 mark.
Source: CryptoQuant
Despite the bearish sentiment, some traders remain active as indicated by a notable 22% increase in trading volume, which has reached $38.55 billion.
High trading volumes during price declines suggest that market participants are likely reinforcing a bearish trend.
Ethereum (ETH) Price Trends and Technical Analysis
Current analyses by AMBCrypto indicate that Ethereum is entrenched in a downtrend. Following the violation of a key support level, further declines could see the asset plummet to around the $2,750 mark.
This bearish view will gain traction should ETH continue trading below the critical $3,000 threshold.
Notably, as of the latest data, ETH’s Average Directional Index (ADX) stands at 43.60, significantly higher than the critical level of 25, suggesting robust directional momentum.
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