Leading altcoin Ethereum has seen a significant price decline. Currently trading at $2,551, ETH has dropped by over 20% in the past month.
This downturn has led Ethereum whales to gradually reduce their positions in the past few weeks.
Ethereum Large Holders Excercise Caution
Due to ETH’s double-digit price decline, ETH whales have reduced their trading activity over the past month. This can be gleaned from the decline in the coin’s large transaction count in the past 30 days.
According to IntoTheBlock’s data, the daily count of ETH transactions worth between $1 million and $10 million has dropped by 5% during this period. At the same time, the daily count of larger transactions valued above $10 million has fallen by 45%.
Ethereum Transaction Count. Source: IntoTheBlock
Additionally, the netflow of large holders for Ethereum (ETH) has plummeted by 77%. Large holders, or whales, are those who own over 0.1% of the asset’s circulating supply.
The large holders’ netflow measures the difference between the amount of ETH that these whales buy and the amount they sell over a specific period.
Ethereum Large Holders Netflow. Source: IntoTheBlock
When the large holders’ netflow metric drops, it indicates whale distribution, which is often a bearish signal. This usually precedes further price declines, as reduced whale activity can negatively impact market sentiment.
ETH Price Prediction: Price Eyes August 5 Lows
The bearish outlook for Ethereum (ETH) is reinforced by the setup of its Parabolic Stop and Reverse (SAR) indicator on the one-day chart. Currently, the indicator’s dots are positioned above the coin’s price, signaling a downtrend.
The Parabolic SAR is a tool used to identify potential trend direction and reversals. When the dots appear above an asset’s price, it indicates that the market is in a decline and that the asset’s price may continue to fall.
Additionally, Ethereum’s Moving Average Convergence Divergence (MACD) is showing bearish signs, with the MACD line (blue) nearing a cross below the signal line (orange). This crossover typically suggests a strengthening downtrend, often interpreted by traders as a signal to consider selling or taking profits.
Ethereum Price Analysis. Source: TradingView
If selling pressure intensifies, ETH’s price could drop toward its August 5 low of $2,112. However, if the market trend shifts and buying activity picks up, the price could potentially rally to $2,867.