Key Takeaways:
- Ether (ETH), the native token of Ethereum DeFi blockchain, dropped 15% in over a week.
- A statistic shows an outflow from exchanges, which could indicate a strengthening HODLing sentiment.
- Are the whales buying the dip, or are the little fish?
- ETH flashed bullish signs despite the setback.
YEREVAN (CoinChapter.com) – In a market-wide correction led by Bitcoin, Ethereum lost over 15% since Nov 9 and traded at $4,109 in Wednesday’s European session. However, Ethereum bulls are not going out without a fight, as on-chain statistics show an outflow of ETH from exchanges.
The exchange outflow could mean a holding incentive among various addresses, both whales, accounts holding large amounts of ETH, and the little fish. Crypto analyst with the Twitter handles LilMoonLambo posted a statistic from Glassnode, showing a clear outflow from exchanges.
In addition to the downside throughout Oct, the chart shows a sharp decline in the previous session. However, a more detailed analysis shows that the “internal fund movements” of ETH within the Kraken exchange might have skewed the statistic. Its ETH balance went from over 2 million to barely over 117 thousand, which affected the overall picture.
While some exchanges like OKEX, Bittrex, and Cobinhood saw outflows, others, like Bitfinex and Binance, retained their ETH liquidity levels.
As CoinChapter reported on Monday, Ethereum’s exchange outflow has been ongoing for over a month. However, the ‘buying and HODLing’ sentiment remains strong, after the much-anticipated upgrades to the alpha altcoin’s blockchain, like the London hard fork and the Altair.
However, the whales’ role in the bullish sentiment might be overrated, as little fish seem to take the stage.
Are Ethereum whales on the move after all?
The recent Ethereum correction did not baffle retail ETH bulls as the number of addresses with over 0.01 ETH grows. Glassnode registered an all-time high of 19,438,708 accounts as of publication. 0.01 ETH is just over $40 at the current exchange rate, which certainly doesn’t sound like whale accumulation.
Moreover, the number of addresses holding 10+ and 100+ ETH coins has fallen to a month low. Those large wallets are down to 279,255 and 42,881, respectively. So it looks like while the whales might have given in to the correction FUD, the little fish are buying the dip.
Meanwhile, ETH…
…held on to a significant resistance-turned-support bar at $4,184-4,285 and moved sideways, fighting the sell-off pressure. The digital asset sought additional support from its 50-day Simple Moving Average (SMA-50; red wave on the chart below).
Additionally, some experts see a bullish Q1 2022 for Ethereum, despite the recent setback. One of them is Michael Van de Poppe, the chief executive of consultancy firm Eight Global. He sees a bull cycle continuation after more price fluctuation in Q4 2021.
