Ethereum’s Netflow Remains In The Positive Region

In the past 24 hours, Ethereum experienced a significant amount of liquidation, totaling $113 million, with more than $98 million coming from long positions. This substantial liquidation occurred in the wake of Ethereum’s price fall from its $2,400 peak down to a low of $2,100.

Data from IntoTheBlock reveals that over the last 48 hours, there has been a considerable inflow of Ethereum to exchanges, amounting to 1.281 million ETH, valued at approximately $3 billion. This influx is due to holders increasingly transferring their Ethereum to exchanges with the intention of selling during the price dip. Such a massive movement of assets to exchanges has hindered any potential bullish recovery beyond the $2,400 ma

Additionally, the likelihood of further bearish trend in the market is on the rise, as evidenced by a steady increase in Netflow over the last few days, according to data from IntoTheBlock. After experiencing a low point of -39K ETH on December 31, there’s been a significant change in the movement of Ethereum. More Ethereum is being transferred to exchanges as the incoming volume begins to surpass the outgoing volume.

As a result of this shift, Netflow has entered a positive phase, currently standing at 32K ETH. On the flip side, this scenario could also be perceived as bullish due to a significant increase in the outflow of Ethereum during the price drop, which has maintained a stable Netflow. Notably, the outflow in the last 48 hours reached an impressive $2.8 billion. This indicates that the decline of Ethereum’s price to the $2,100 level presented a lucrative opportunity for smart investors. This investment behavior has contributed to Ethereum’s price recovery, allowing it to rebound and reach the $2,250 level.

What’s Next For ETH Price?

There was an attempt by bulls to push Ethereum’s value past the $2,400 resistance level. However, the long wick indicates that there was selling pressure at these higher price points. Later, Ethereum’s price sharply declined, falling below its moving averages and touching the low near $2,100. As of writing, ETH price trades at $2,232, declining over 6% in the last 24 hours.

A slight positive aspect is the buyers’ response; they stepped in to buy the dip at the $2,100 mark and are now making efforts to maintain the price above $2,200. However, bears continue to pose risks near the 61% Fib channel.

The recent price movements suggest that the ETH price might continue to fluctuate within the $2,100 to $2,450 range for some time. For a more massive correction to occur, dropping to $1,900, the bears would need to drive the price below $2,000. In this case, ETH price hover around the $1,800 level.

Conversely, if the price climbs above $2,450, it could pave the way for a surge towards the ascending resistance line at $2,600. In such a case, we might see ETH price surging toward the $3,000 mark.

JP Morgan stressed that “excessive optimism” could work against Bitcoin next year.

In addition, the institution’s analysts noted that the above-mentioned event of halving miner rewards is “largely priced into” the asset’s current value.

Therefore, they do not expect huge profits over the next year, Watcher.Guru reports.

Throughout much of 2022 and early this year, Bitcoin struggled to find its place in the mainstream.

Indeed, the entire industry has experienced a cryptocurrency winter, which has raised many concerns about its ability to recover.

Now that 2024 is a month away, the excitement around this asset has never been higher.

Anticipation of the potential approval of an exchange-traded fund (ETF, an exchange-traded fund that invests directly in cryptocurrency) and the future halving of rewards has led to optimism about its potential.

However, one bank is not so optimistic about the cryptocurrency’s overall positive performance over the next year.

Additionally, according to JP Morgan, Ethereum could become a more productive asset in 2024.

The bank’s forecast for next year is “cautious”, taking into account many factors.

In particular, they pointed to the potential for overexcitement to eventually work against Bitcoin.

Subsequently, this led to the asset being overbought in the market, which had already taken into account the upcoming halving event.

The wallet designated as 0x8B20 took a bullish stance, deploying a total of $3 million USD in stablecoins to acquire 35.18 WBTC at $42,641 each and 674.18 ETH at $2,225 each.

After the BTC/ETH plummeted, 2 whale wallets bought $WBTC and $ETH at the bottom.

0x8B20 spent 1.5M $USDC to buy 35.18 $WBTC at $42,641 and spent 1.5M $USDC to buy 674.18 $ETH at $2,225.https://t.co/gKzuJwCPu8

0x4198 spent 1.5M $USDC to buy 35.12 $WBTC at $42,708 and spent… pic.twitter.com/ftmQKBbtXR— Lookonchain (@lookonchain) January 3, 2024

This strategic action by cryptocurrency whales is a significant indicator of strong market sentiment. Such movements often suggest a belief among experienced investors that any forthcoming dips in price will be short-lived, offering quick recovery and providing upward momentum. Following the whales’ lead, the crypto market has recouped over 5% of its value, suggesting resilience and a possible trend reversal on the horizon.

The potential approval of a Bitcoin ETF is a critical factor that could catalyze a market turnaround. Despite the common “sell the news” events that often follow such announcements, the approval of a Bitcoin ETF would likely boost investor confidence, attracting institutional money.

As the market navigates through these turbulent waters, the actions of whale investors offer a glimmer of optimism. The significant investments from these large-scale holders suggest a belief in the enduring value of cryptocurrencies like Bitcoin and Ethereum. If the ETF receives the green light, we may well witness a significant rally, affirming the whales’ bullish maneuvers and potentially leading to a market reversal that could reshape the investment landscape.