Ethereum
777,000 Ethereum Moved After ETF Approval: Impact on ETH?
- Ethereum price has fallen more than 2% in the last seven days
- Measurement indicates ETH is overvalued
Ethereum [ETH] created a lot of buzz in the crypto space when the United States Securities and Exchange Commission gave its approval to ETH ETFs. Although the ETH price did not turn bullish after the approval, things could change in the coming days.
Is the buying pressure high?
Before ETFs were approved, there was a lot of anticipation and hype about them. Meanwhile, ETH price action has also become volatile heading north.
However, once the proposal was adopted, things calmed down. In fact, Ethereum has been struggling in recent days.
According to CoinMarketCap, ETH is down more than 2% in the last seven days. At the time of writing, the king of altcoins was trading at $3,814.82 with a market cap of over $458 billion.
Meanwhile, Ali, a popular crypto analyst, recently published a Tweeter highlighting an interesting development.
According to the tweet, around 777,000 ETH, valued at around $3 billion, has been withdrawn from crypto exchanges since the ETF’s approval. This indicates strong buying pressure, which could also have a positive impact on the price of the token.
Therefore, AMBCrypto analyzed its on-chain metrics to see if buying pressure was actually high. AMBCrypto’s analysis of Santiment data revealed that Ethereum exchange outflows fell last week.
Its supply on exchanges increased, meaning investors were selling ETH instead.
In addition to this, the supply of tokens held by top addresses also decreased slightly last week. This meant that whales were also selling ETH as it struggled to reach $4,000.
Source: Santiment
Look forward to
As selling pressure increased, a key indicator turned bearish on the token. Our analysis of Glassnode data revealed that Ethereum’s NVT ratio saw a sharp rise on June 1.
To begin, the metric is calculated by dividing the market capitalization by the volume transferred on-chain measured in USD.
Any time the metric increases, it indicates that an asset is overvalued. This suggests that the chances of a price correction were high.
Source: Glassnode
We then analyzed Ethereum’s daily chart to better understand which direction it was heading. The MACD technical indicator showed a bearish crossover, hinting at a price correction.
Read Ethereum [ETH] Price prediction 2024-25
Nevertheless, the Chaikin Money Flow (CMF) recorded a slight increase.
Additionally, the Relative Strength Index (RSI) also looked bullish as it was well above the neutral bar. If the data of these two indicators are to be taken into account, then there are chances of an increase in prices.
Source: TradingView