- \n
- Ethereum\u2019s exchange reserve declined sharply on the 30th of May.\u00a0<\/span><\/em><\/li>\n
- Metrics suggested that ETH was in an overbought position.<\/span><\/em><\/li>\n<\/ul>\n
Ethereum [ETH]<\/span><\/a> enthusiasts got excited last week as the king of altcoins\u2019 price once again exceeded $3.9k. However, ETH couldn\u2019t hold its momentum and soon fell from that level. In the meantime, whales took the opportunity to stockpile more ETH.\u00a0\u00a0<\/span><\/p>\n
Interest in Ethereum is growing\u00a0<\/b><\/h4>\n
ETH had a rollercoaster ride last week as it managed to go above $3.9k on the 27th of May. But bears arrived soon as its value dropped. <\/span><\/p>\n
It was interesting to note that the ETH ETF approval couldn\u2019t propel substantial growth for the coin over the last week. <\/span><\/p>\n
According to <\/span>CoinMarketCap<\/span><\/a>, ETH was down by over 1% in the last seven days. At the time of writing, the token was trading at $3,759.66 with a market capitalization of over $451 billion. <\/span><\/p>\n
While the token\u2019s price volatility remained high, whales made their move. <\/span><\/p>\n
A<\/span>li, a popular crypto analyst, recently posted a <\/span>tweet<\/span><\/a> highlighting that there\u2019s been a notable increase in Ethereum addresses holding more than 10,000 ETH. <\/span><\/p>\n
This increase in the number of addresses suggested that whales were moving from a distribution phase to an accumulation phase. <\/span><\/p>\n
AMBCrypto\u2019s look at Glassnode\u2019s data pointed out yet another metric that suggested a rise in accumulation. Ethereum\u2019s balance on exchanges witnessed a major decline on the 30th of May, indicating high buying pressure.<\/span><\/p>\n
![\"Ethereum's](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/05\/glassnode-studio_ethereum-balance-on-exchanges-total-eth-all-exchanges.png\")
<\/a><\/p>\nSource: Glassnode<\/p>\n<\/div>\n
The flip side of the story<\/b><\/h4>\n
Though the aforementioned data suggested that investors were buying ETH, AMBCrypto\u2019s look at CryptoQuant\u2019s <\/span>data<\/span><\/a> revealed a different story. <\/span><\/p>\n
As per our analysis, Ethereum\u2019s net deposit on exchanges was high compared to the last seven-day average, hinting at a rise in selling pressure. <\/span><\/p>\n
On top of that, ETH\u2019s Coinbase Premium was red. This clearly meant that selling sentiment was dominant among US investors. <\/span><\/p>\n
A possible reason behind this could be ETH being overbought. Both ETH\u2019s Relative Strength Index (RSI) and stochastic were in overbought positions.\u00a0<\/span><\/p>\n
![\"\"](\"image\/svg+xml,%3Csvg%20xmlns=\")
![\"\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-31-at-10.42.39\u202fAM.png\")
<\/a><\/p>\nSource: CryptoQuant<\/p>\n<\/div>\n
AMBCrypto then analyzed Ethereum\u2019s daily chart to see how this change in buying and selling pressure might impact its price in the coming days. <\/span><\/p>\n
The technical indicator MACD displayed the possibility of a bearish crossover. The Money Flow Index (MFI) registered a slight downtick. <\/span><\/p>\n
As per Bollinger Bands, ETH\u2019s price was in a highly volatile zone and was still resting well above its 20-day Simple Moving Average (SMA). <\/span><\/p>\n
\nIs your portfolio green? Check the <\/span>Ethereum Profit Calculator<\/span><\/a>\u00a0\u00a0<\/span><\/p>\n
\nTherefore, if the price decline continues, then ETH might first plummet to its 20-day SMA before rebounding.\u00a0<\/span><\/p>\n
Nonetheless, the Chaikin Money Flow (CMF) looked bullish as it went northward. This might allow ETH to break above its resistance at $3.789k sooner than expected.\u00a0<\/span><\/p>\n
- Metrics suggested that ETH was in an overbought position.<\/span><\/em><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/05\/ETHUSD_2024-05-31_10-51-25.png\")