Key Points
- Ethereum has seen a significant increase in large transactions, with weekly volumes peaking at $17.15 billion.
- Despite falling below the $4,000 mark, Ethereum maintains strong support levels and bullish momentum.
Ethereum has experienced a notable rise in large transactions recently.
Increased Activity in Large Ethereum Transactions
The weekly volume of large transactions spiked by over 300% to reach $17.15 billion on December 6th, before dropping to $7 billion. This increase has piqued interest as Ethereum’s price nears significant psychological thresholds.
Data from Santiment shows a sharp increase in whale transactions exceeding $100,000, which suggests an increase in activity from institutions or high-net-worth individuals. This surge coincides with Ethereum’s recent rally to $4,000, implying that some whales may be taking profits or redistributing their holdings.
Correlation Between Exchange Netflow and Price
The exchange netflow chart reveals alternating inflows and outflows, with recent significant outflows indicating reduced selling pressure. A negative netflow exceeding 17,000 was observed, which usually signifies bullish sentiment as traders move assets into cold storage. However, the price has encountered resistance near the $4,000 mark, corresponding with the psychological barrier and profit-taking activity.
Ethereum’s price chart has demonstrated a consistent uptrend since early November, with the 50-day moving average providing strong support. The recent rally to $4,000 was characterized by increased volume, suggesting robust market participation. Nevertheless, the RSI reading of 69.62 suggests that Ethereum is nearing overbought territory, which often results in short-term price correction or consolidation.
The MACD remains in bullish territory, indicating continued upward momentum. Key support levels are at $3,800 and $3,500, aligning with the 50-day moving average and previous resistance levels, now serving as support. The surge in large transactions underscores growing interest and activity among whales, likely spurred by Ethereum’s improving fundamentals and bullish sentiment.
While Ethereum appears to be in a healthy uptrend, with key support levels remaining strong and momentum indicators favoring further upside, the resistance at $4,000 should be closely monitored. The market could experience a temporary cooling-off period before attempting higher levels.
