Glassnode data shows that the number of ETHs flowing into the exchange is at its lowest level in the past four weeks. However, the decrease in selling pressure may take time to translate into the bullish momentum of counterfeit currency
Glassnode data shows that the number of ETHs flowing into the exchange is at its lowest level in the past four weeks. However, the decrease in selling pressure may take time to translate into the bullish momentum of counterfeit currency.
- As the market loses volatility, ETH selling pressure drops to monthly lows.
- The lack of bullish momentum confirms that bears are still on the sidelines.
Ethereum's local currency ETH has been relatively dormant for nearly two weeks, providing some horizontal activity during this period. This performance may not last for a long time, as based on this new data, ETH may be about to experience new fluctuations.
The latest data from Glassnode shows that ETH bears are losing control of the market. This may create opportunities for bulls. But are the bulls ready to take over?
Firstly, let's take a look at some of the latest market observations that may provide insights into the next direction of the market. The latest Glassnode data shows that the number of ETHs flowing into the exchange is at its lowest level in the past four weeks. This can be explained as a decrease in selling pressure.
In addition, Glassnode data also shows that more ETH holders are mortgaging their tokens. Therefore, the total value locked in ETH2.0 deposit contracts has been increasing, recently soaring to the new ATH. In other words, more ETH holders are very confident in locking in their ETHs, which means long-term attention.
ETH bulls failed to take advantage of current opportunities
These findings may provide a favorable prospect, but only if there is a corresponding demand. Our first target may be ETH whales, who have been unloading some ETH for the past 7 days.
The address holding at least 1000ETH has been declining during this period. The number of active addresses has also decreased, especially since mid May. However, data shows that the address is now resuming activity, which may be the first sign of upcoming fluctuations.
The address stream depicts a blurry image for multiple heads. From May 19th to 21st, the receiving address was relatively low, reflecting low bullish demand. At the same time, the number of sending addresses surged between May 18th and 21st, indicating that the ratio of buying to selling pressure is still favorable for bears.
Based on the above findings, it is evident that there is still a lot of uncertainty on both sides of the watershed (long and short) in the market. ETH's derivative indicators show similar results.
For most of May, ETH's open positions in the derivatives market have been in a sideways consolidation state. So far, it has not indicated any noteworthy changes. Similarly, ETH's financing ratio confirms a lack of excitement in the market.
Based on the above findings, the ETH index did not accurately provide any specific indications of directional fulcrums. However, given the fast-paced nature of the encryption market, there may still be directional fluctuations this week.
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