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- Traditional investors are on a selling spree as ETH ETFs extend their outflow streak to eight days of consecutive negative flows.
- Whales are also dumping ETH heavily following its recent price decline.
- Vitalik Buterin holds 90% of his net worth in ETH.
- Ethereum is attempting to move below a key trendline that suggests further price decline amid mixed signals across technical indicators.
Ethereum (ETH) is down nearly 4% on Tuesday following increased selling pressure from ETH ETF investors and whales. The selling pressure has also led to Ethereum co-founder Vitalik Buterin being accused of not believing in ETH as a store of value (SoV).
Daily digest market movers: Ethereum ETF outflow streak, whales sell pressure, Vitalik Buterin’s net worth
Ethereum ETF investors have yet to stop shedding their holdings after the products posted net outflows of $13.2 million on Monday, per Farside Investors’ data. As a result, ETH ETFs have stretched their negative flow streak to eight consecutive days of net outflows.
Unlike previous days, where Grayscale’s ETHE outflows outweighed inflows from other issuers, none of the new eight ETH ETFs recorded inflows. Fidelity’s FETH, Franklin’s EZET and Grayscale’s ETHE saw outflows of $2.7 million, $1 million and $9.5 million, respectively.
A similar trend is occurring among investors within the traditional crypto market, where several whales have potentially been dumping ETH by depositing on centralized exchanges in the past few hours, according to data from Lookonchain:
- A whale who withdrew 5,088 ETH worth $17.24M from Binance at $3,389 sold all of his holdings for $13.58M with a total loss of $3.66M.
- Two whales that were about to be liquidated on Aave sold a combined 8,208 ETH worth $21.59M.
- Another whale requested to unstake 30,000 ETH. The whale claimed and deposited 19,000 ETH worth $49.17M to Binance for a potential sale.
- Shortly after, another whale exchanged 4,591.8 stETH for 4,589.5 ETH at a loss of 2.3 ETH to avoid the withdrawal queue. The whale eventually deposited 5,145 ETH worth $13.3M to Binance.
Following the heavy selling pressure, several crypto community members have accused Ethereum co-founder Vitalik Buterin and core developers of not believing in ETH as a store of value (SoV). However, Buterin refuted the claims, stating he holds 90% of his net worth in ETH.
If I did not believe in ETH as SOV I would not hold ∼90% of my net worth in it.
— vitalik.eth (@VitalikButerin) August 27, 2024
ETH technical analysis: Ethereum falls below key trendline as indicators signal mixed sentiment
Ethereum is trading around $3,580 on Tuesday, down 4% on the day. In the past 24 hours, ETH has seen over $48 million in total liquidations — the largest in the crypto market. The recent price decline liquidated several long positions worth $46.46 million, while shorts saw only $1.8 million in liquidations.
Ethereum is attempting to descend below a key trendline that suggests its price could test the lower ascending trendline of a key triangle. Such a move could see ETH finding support around the $2,000 to $2,300 range before staging a rally.
ETH/USDT Daily chart
ETH posted similar declines from August 2022 to November 2022 and July 2023 to October 2023 before rallying on both occasions. If ETH completes this move, it could attempt to tackle the upper descending trendline of the triangle and eventually challenge its yearly high of $4,093.
The Relative Strength Index (RSI) crossed below its moving average on Monday, indicating bearish momentum.
After posting a bearish signal when its %K line crossed below its %D line around the overbought region, the Stochastic Oscillator (Stoch) is signaling prevailing bearish momentum at 22. A move into the oversold region below 20 could indicate a potential buying opportunity.
The Awesome Oscillator (AO) continues to post consecutive smaller green bars below the zero line. A continuation of this move could signal weakening bearish pressure.
The thesis will be invalidated if ETH breaches the lower ascending trendline of the triangle.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.