Summary:
- Cryptocurrency exchanges had an inflow of 8,170 ETH before yesterday’s drop to $ 370
- This translates to around $ 3.1 million using an Ethereum fee of $ 380
- Of this amount, 4,000 ETH was deposited on Binance before the brief crash
- The sale of Ethereum could indicate the exhaustion of the purchase and a correction in the pipeline for ETH
This week started on a tumultuous note in the cryptocurrency markets due to the two events of today’s US presidential election and the increase in COVID19 cases in Europe which is causing further blockages. The start of Monday saw the price of Ethereum drop from $ 404 to $ 370 in less than 6 hours.
Ethereum holders sent 8,170 ETH to cryptocurrency exchanges before Dip
According to the CryptoQuant team, around 8,170 ETH was sent to crypto exchanges before the drop. This translates to around $ 3.1 million using Ethereum’s current price of $ 380. The CryptoQuant team further shared their observation on Ethereum’s influx into exchanges via the following tweet.
$ ETH The trade flow average for all trades reached 8,170 before declining.
👉 Set up alerts at https://t.co/Qiay1YmK5B pic.twitter.com/GkN5ftryQI
– CryptoQuant.com (@cryptoquant_com) November 2, 2020
It is also worth mentioning that 4,000 ETH of this amount was sent to Binance 20 minutes before Ethereum took a short dive in the cryptocurrency markets. This event was captured by the CoinMetrics team as can be seen in the following tweet.
🧐4,000 ETH was deposited in @binance 20 minutes before the recent market downturn pic.twitter.com/NKjydgSDSP
– CoinMetrics.io (@coinmetrics) November 2, 2020
ETH inflows could suggest a local top for Ethereum
The sale of Ethereum started around the $ 400 price zone. This could mean that this price zone was the last region where some ETH investors could sell their exchanges at a profit. Furthermore, it could be the first sign of exhaustion for Ethereum at least for the month of November.
By further checking the daily ETH / USDT chart above, Ethereum could be in the middle of printing a bearish flag which could result in retesting several support zones above $ 300. They include those found at $ 365, $ 336, $ 320 and $ 309.
The following can also be seen from the graph.
- The 50-day moving average provides a support level in the $ 370 price area
- The 200-day MA provides adequate support in the $ 300 price range
- Failure of the aforementioned support zones could lead Ethereum to drop as low as $ 250
- Trading volume is in the red with the daily MACD confirming the downside for Ethereum
- The daily MFI and RSI also suggest a correction to values of 58 and 46 respectively
Conclusion
In summary, Ethereum holders transferred 8,170 ETH to cryptocurrency exchanges before yesterday’s drop from $ 400 to $ 370. The transfer and subsequent sale could suggest a bullish exhaustion for Ethereum and could open the door to a correction for the part. best of November.
As with all Ethereum analysis, traders and investors are advised to use adequate stop losses when trading ETH on the various derivative platforms.
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