The prices of Ethereum last week was nothing short of an emotional rollercoaster for traders, as they witnessed four-hour candles of a large price movement seven times. Also, the latest drop of about 30% leading to $920 brought out the $550 million that was kept in liquidations for future contracts. Interestingly, the correction in the current price taking place just a few weeks before CME’s ETH futures gets launched. In this time period, it is quite possible to expect that even the most bullish of Ethereum traders wouldn’t be expecting a rally of 85% to take place in just eight days, Needless to say, the altcoin went through a resistance of $800, only to climb up to $1,350- which is just 5% behind the all-time high.
Currently, Ethereum isn’t the hub of negative news for large media outlets. Rather, most of the data shows that the fundamentals of this altcoin are still quite strong- with investors contending to wait for future network developments.
If we want to observe how the latest crash actually reflected a local top potentially, one has to start analyzing the transfer values, and the transactions taking place.
Exchange withdrawals point to whale accumulation for Ethereum
There are quite a few reasons why the number of withdrawals can increase solely through exchanges- which includes yield farming, staking, and purchases depositing their coins in cold storage. More often than not, a steady chain of net deposits is usually an indicator of a willing seller of Ethereum in the short term.
The futures premium is still unusually high for Ethereum
Most of the traders at a professional level would choose to dominate most of the future contracts in the long-term- which would then be associated with expiry dates. When one measures the gap taking place between the regular and the future spot market, it is easy to observe the bullishness taking place. And this is exactly how most research analysts would be able to observe the bullishness in Ethereum traders.
Despite the current sell-off, the stocks of Ethereum still show good fundamentals, which can be a good sign for the investors of this cryptocurrency.
