Ethereum Price Dips But HODLers Stay Strong, Analysts Predict Rebound

Ethereum (ETH) has seen a recent price decline, dropping to around $3,500. However, despite the bearish trend, on-chain data suggests

Arslan Butt•Thursday, June 13, 2024•1 min read

Ethereum Price Dips But HODLers Stay Strong, Analysts Predict Rebound

Ethereum (ETH) has seen a recent price decline, dropping to around $3,500. However, despite the bearish trend, on-chain data suggests underlying bullish sentiment.

ETH Price Decline Meets Whale Accumulation

Ethereum’s daily chart shows a significant decline, with its biggest one-day drop in a month occurring on June 11th, falling nearly 5% to $3,500. This drop pushed ETH into a technical “bear trend.”

While the price dipped, whale addresses (holding 10,000 to 100,000 ETH) on Santiment have actually been accumulating, showcasing potential confidence in ETH’s long-term value. They’ve bought over 240,000 ETH (around $840 million) recently.

Exchange Outflows Signal Reduced Selling Pressure

Data from CryptoQuant reveals a recent surge in exchange outflows, particularly from Coinbase, with their highest outflow of the year exceeding 336,000 ETH (roughly $1 billion). Ethereum’s overall netflow has been negative for several days, indicating more buying than selling is happening off-exchange. This suggests a potential price recovery as selling pressure eases.

Analysts Predict Rebound

Some analysts, like X users Wolf and Jelle, believe technical indicators like the negative netflow and low RSI (indicating oversold territory) suggest a potential reversal and price increase.

Wolf predicts increased volatility followed by a bull run that could push ETH above $5,000, while Jelle sees a potential surge if ETH surpasses the $3,700 resistance level.

FOMC Jitters Cause Short-Term Volatility

Following the Federal Open Market Committee (FOMC) statement on June 12th, Ethereum’s price briefly jumped to $3,655 on hopes of positive news, before retracing.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.