- ETH has shown a sideways price movement in the last few days, indicating a pause for the bears. According to one of the latest Glassnode data, retail addresses are accumulating at current levels.
- ETH bulls are still not dominant. This means that the accumulation is not strong enough at current levels. The reason for this could be investors’ concern that the decline may continue.
- ETH’s estimated leverage ratio is currently at its lowest level in the past 4 weeks. This highlights a low interest in the cryptocurrency at the moment.
Whales in Ethereum triggered the price drop, but retail investors have started accumulating ETH again.
Retail Investors in Ethereum Start Accumulating
Ethereum has been in a bear market trend since the second week of July. The drop in mid-August further expanded this negative aspect, but bulls are showing signs of exhaustion now. Recent findings indicate an acceleration in accumulation.
ETH has shown a sideways price movement in the last few days, indicating a pause for the bears. According to one of the latest Glassnode data, retail addresses are accumulating at current levels. The data reveals that Ethereum addresses holding at least 10 ETH have reached the highest level in the past 4 weeks.
This observation was an indicator that ETH traders gained some confidence in the market. It was also supported by the observation that ETH was being transferred out of exchanges. Additionally, ETH exchange balances reached a multi-year low.
ETH’s exchange balance was last observed this low in 2016. This observation was also a positive sign for the long-term bullish outlook as it confirms a long-term trend.
However, ETH bulls are still not dominant. This means that the accumulation is not strong enough at current levels. The reason for this could be investors’ concern that the decline may continue, especially considering the current threat of high interest rates.
Factors Influencing the Inactivity of Bulls
The demand situation in the derivatives market highlights the aforementioned concern. Typically, a significant price drop, as we have recently observed, attracts significant demand. However, this price drop was characterized by heavy liquidations. Further downside threat and subsequent uncertainty reduced ETH options open interest.
ETH’s estimated leverage ratio is currently at its lowest level in the past 4 weeks. This highlights a low interest in the cryptocurrency at the moment. However, there seem to be some usual suspects, such as those cutting their coins by selling in the categories of 1,000 and 10,000 ETH, contributing to selling pressure.
Although there is a real threat of further downside, traders should take note of the next FOMC meeting scheduled for the second half of September. This means that bulls may have an opportunity to gain an advantage in the market. However, along with the current whale activity, traders should observe when the whales start to turn, as it indicates the beginning of a bullish relief.
