Key Takeaways:

  • Ethereum whales dump over $204 million worth of ETH in two weeks.
  • The big addresses do not hope for further peaks in the short term.
  • Is there bullish hope for ETH?

YEREVAN (CoinChapter.com) ‚Äď Ethereum whales (addresses holding 1,000 to 10,000 ETH) parted with 110,000 tokens in the last two weeks, which amounts to approximately $204 million at the current ETH price of $1,850 on May 2. Judging by the chart below, the whales took the local peak of $2,100 on April 16 as a SELL cue and took profit.

Ethereum whales part with their stash.
Ethereum whales part with their stash. Source: @ChrisBTCbull on Twitter.com

Large ETH holders expect no more returns in the short-term

As a result, the number of Ethereum whales holding over 1,000 ETH dropped to a 5-month low of just under 6,500 addresses as of May 2.

Additionally, on May 1, crypto analytical platform Santiment detected the one of the largest self custody to exchange transfers in 5 years. An unknown address transferred nearly 274,000 ETH (worth around $505 million) to Binance, possibly with the intention to sell.

Also read: Bitcoin Miners Unload Reserves Despite BTC’s 75% Rally in 2023.

The transaction was reflected in Glassnode’s daily ETH exchange netflow. The exchange inflow outpaced the outflow by $500 million. Generally, a faster inflow pace signifies the traders’ readiness to unload their tokens rather than hold on to them.

This tends to happen when investors don’t expect further returns and believe the asset has already achieved its local peak. When they do sell, however, the asset price drops, fulfilling the expectations. Thus, in a way, trader expectations, and especially whale expectations, tend to have real-world results.

Also read: Venture Capitals Bet on Ethereum Post-Shapella ‚ÄĒ ETH to $2K?

Additionally, the whales’ decision to sell came ahead of the Federal Open Market Committee meeting on May 3. The market participants believe lawmakers could approve another 25 bps interest rate hike despite the banking sector crunch. If so, the risk-on assets are likely to fall against the rising dollar index and take the cryptocurrencies along for the ride.

ETH price could drop to $1.7K despite a bullish setup

As mentioned, the Ethereum whales’ take-profit approach could send the largest altcoin to $1,700 before Sunday, May 7. As of May 2, ETH dropped 13% since peaking at $2,100 on April 16. As seen on the chart below, ETH traded within a symmetrical triangle setup, which targets the token price at over $2,300, possibly by the end of Q2.

Ethereum (ETH) daily price action chart.
Ethereum (ETH) daily price action chart. Source: TradingView.com

However, short-term fluctuations do not trump the bigger picture. Thus, Ether could decline below $1,800 despite the long-term bullish outlook. The lowering trading volumes on the daily chart back the forecast, showing traders’ declining interest.

If the prognosis is correct, short-term target for ETH would stand at the next support of $1,700.

Ethereum‚Äôs NVT signal reached a one-month low ‚Äď bullish hope?

According to Glassnode, Ethereum’s Network Value to Transaction (NVT) signal reached a month-low on May 2.

In short, the Network Value to Transactions ratio describes the relationship between market cap and transfer volume. Per analyst Willy Woo, its creator, NVT can be considered analogous to the PE (price to earnings) Ratio used in equity markets.

A growing NVT indicates that investors are pricing Bitcoin at a premium. Per Glassnode‚Äôs¬†definition, NVT grows when ‚ÄúMarket Cap growth outpaces utilization of on-chain transaction volume and value settlement.‚ÄĚ

Low NVT Ratio values have historically coincided with market bottoms and periods of undervaluation. Given the downward trajectory of the current NVT reading, a leg up might be in the books soon enough. The on-chain metric backs the symmetrical triangle’s bullish prediction, allowing for bearish expectations in the short term.

Also read: Ethereum Price Breaking This Confluence Resistance Could Spark Fresh Rally.

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