The bulls appear to have completely exhausted themselves, holding the cryptos above their respective support levels. Hence, a notable pullback is fast approaching, which may drag the Ethereum prices by another 10% to 15% until the weekend. The fractals like derivatives, TVL, and the usage of DApps are not in favor of bulls. The price has faced strong resistance at $1920, recently after undergoing a rally of more than 15%. However, the upswing could not prevail for long, and the price dropped back below the major support.
Considering the on-chain readings, the usage of DApps on Ethereum has been depleting as the ETH gas fees dropped by 60%. Besides, the seven-day average transaction cost also dropped close to $3.7 from its high of $9. Moreover, the active DApp address also declined by more than 25%. If we consider the mindset of professional traders, they have been avoiding leveraged longs, or, in simple words, avoiding bullish bets.
These above metrics offer a favourable condition for the bears, and the worsening of macroeconomic conditions and regulatory concerns have also negatively impacted the price.
Whales Bullish on Ethereum!
Whale activity is closely followed within the crypto space as it is considered one of the indicators of the upcoming trend. Currently, the ETH price remains stuck within narrow regions, but the whales continue to be bullish on the Ethereum price as they are making a substantial shift from the other cryptos onto ETH.
A popular on-chain platform, Lookonchain recently revealed that a whale withdrew 1.93 trillion PEPE worth nearly $3.03 million. This is speculated to occur after the whale swapped LINK and BNB at a loss for PEPE and ETH.
The main reason behind the move remains highly speculative. However, the whales usually swap tokens, if they find potential in other tokens, now in PEPE and ETH. Ethereum’s being more stable and having the potential to go long in the long term may be the major reason behind the swap. Hence, a significant move may be expected in the near future, but for now, a consolidated narrow swing could be imminent.
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