Ethereum (ETH): Why the Latest Rally Shouldn’t Confuse You
The latest data from an on-chain analytic firm Santiment indicated that the leading alt, Ethereum, noted a substantial token exchange between whales on the blockchain on October 20.
The analytics platform stated that coin shuffling among whale wallets happened when the alternative token hit weekly lows and after ETH saw the highest increase in transaction volume.
These addresses moved 320,000 ETHs, and the alt reacted with an immediate drop beneath $1,300 to explore the lows at $1,260 before a considerable bounce. Coinmarketcap data shows the altcoin gained 5%. While publishing this blog, Ethereum traded near $1,348.97.
Surprisingly, besides the price rally, the token movement between whale wallets triggered surges in the token’s market dominance, according to LunarCrush data. The crypto’s social analytics site stated that ETH recorded a massive weekly close yesterday, with its hourly market dominance wavering beyond 17.2%, substantially beyond the 7d average.
The Nays Win
Though the last few days experienced notable upticks in market dominance and price, evaluating price action on the 24hr chart showed Ethereum sellers still dominated the marketplace. The Exponential Moving Average confirmed the narrative with its position.
While publishing this content, the 20 Exponential Moving Average stayed beneath the 50EMA, highlighting the magnitude of the current bear action. Also, Ethereum’s DMI (Directional Moving Index) showed the asset’s severed distribution has prevailed since mid-September.
Moreover, Ether sellers dominated buyers on the daily chart at this publication. The press time seller strength at 21.44 massively outshined buyers at 18.64.
While Ethereum’s RSI (Relative Strength Index) rested beyond the neutral zone, it maintained a flat stance since October 23, confirming the market retained sideways. While writing this content, the metric hovered at 52. The MFI (Money Flow Index) stayed slightly under the neutral-50, reading 49.
Furthermore, the Chaikin Money Flow’s dynamic line maintained downtrends at the center line. Buyers’ failure to trigger correction would welcome more CMF decline beneath the center line, indicating increased selling momentum.
Indeed, the cryptocurrency market saw notable upsurges within the previous 24 hours. Most assets hover in green during this publication. Nevertheless, time will reveal whether the assets can sustain their upsides.
Stay tuned for the upcoming cryptocurrency news.