- ETH bulls faced exhaustion after a short-lived buying frenzy.
- Whales continued to offload their ETH holdings.
Ethereum [ETH] delivered a healthy bounce back in the second week of June after previously lending favor to the bears. However, that upside was short-lived now that ETH has given up some of its recent gains.
Read Ethereum (ETH) price prediction for 2023/2024
Some of its latest on-chain observations suggest that ETH bears might not be done. A good example was ETH’s median transaction volume which recently fell to a 5-month low. It dropped lower than it was in the previous 5-month low at the start of March.
📉 #Ethereum $ETH Median Transaction Volume (7d MA) just reached a 5-month low of $61.03
Previous 5-month low of $61.14 was observed on 01 March 2023
View metric:https://t.co/XyjApgIHFA pic.twitter.com/KvOrlb9orC
— glassnode alerts (@glassnodealerts) June 20, 2023
ETH experienced a surge in sell pressure during the previous 5-month low. Interestingly, its price action has already given in to sell pressure in the last three days. A sign that the previously observed bullish momentum has run out of steam. This outcome is likely because ETH could not sustain the strong accumulation that took place within the recent low range.
The above observation also aligns with the return of sell pressure. One of Glassnode’s latest alerts revealed that exchange deposits have not only been on the rise, but were now at a 5-month high. This means ETH has been flowing into exchanges, hence manifesting as sell pressure.
📈 #Ethereum $ETH Number of Exchange Deposits (7d MA) just reached a 5-month high of 3,039.185
View metric:https://t.co/Bar49XOvlB pic.twitter.com/4zAsItwrtu
— glassnode alerts (@glassnodealerts) June 20, 2023
ETH whales still on short-term profit settings
Ethereum validators are reportedly considering increasing the validator limit from 32 ETH to 2,048 ETH. The proposal has received criticism because it will make it more difficult for the new validators to jump on board. Meanwhile, whales are still offloading their ETH. Addresses holding at least 1000 ETH have been contributing to sell pressure in the last 5 days.
Source: Glassnode
On-chain volume also tapered out after previously starting off by gaining momentum in the last 7 days. This confirms that ETH ran out of the previously observed bullish momentum, despite the prevailing bullish sentiment.
Source: Santiment
Will ETH maintain the current momentum? Well, its current performance is consistent with the above on-chain data. ETH exchanged hands at $1,729 and has notably been struggling to push above the $1,750 range.
Source: TradingView
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Whether or not ETH will continue to rally or lend itself to the bears is still a toss-up. Nevertheless, the outcome might become more apparent in the next 24 hours after the FED reveals its position on interest rates.
A higher than anticipated hike may lead to more sell pressure while the opposite may pave way for another run-up.
