Ethereum resumed its uptrend a few hours ago after a brief decline. At the time of writing, it had reclaimed $3,100 and was eyeing $3,200.
The apex coin recovered from a small decline during the previous intraday session, which saw it lose almost 2%. However, it has failed to gain stability above $3,200 over the last four days.
The latest price struggles started on Nov. 12 following its failed attempt at $3,500. ETH peaked at $3,446 but retraced to a low of $3,210 before rebounding. The asset suffered smaller losses over the next two days, edging closer to breaking the $3k support.
Ether has since hovered between $3,000 and $3,200. The latest 3% hike sparks hopes of a possible breakout from this trend. However, onchain data shows increasing selling pressure.
Declining Exchange Inflows
IntoTheBlock points to a gradual decline in funds going into exchanges. Outflows are slowly increasing as selling pressure mounts. The declining bullish sentiment is present in total netflow drops. The total flow was at $45 million as of Nov. 16 but dropped to $37 million on Nov. 17.
The number of large transactions has reduced over the last seven days. Ethereum recorded a massive 10314 transfers on Nov. 12 but 5187 as of the previous intraday session. In summary, the analytics firm predicts increasing bearish sentiment as one of its five metrics is currently negative, and two are neutral.
Over 75% of the current holders are in profit, while 19% have yet to break even. CryptoQuant suggests that traders are taking profit at the time of writing. For example, the Korea premium is negative as the asset sees reduced buying pressure from the region. The Funds premium is negative as outflows exceed inflows.
Exchange reserves are also increasing, gaining 0.27% over the last 24 hours. The trend remained constant in the previous seven days, and the reserves gained 0.61%. However, transfers from cold storage significantly dropped, with more investors moving assets into hot wallets. Transfer volume surged by over 300% in the last 24 hours.
The derivatives market sees the bears slightly edging. Selling sentiment is dominant at the time of writing. The latest change in sentiment follows the asset’s recent attempt at $3,200. The short position holders lost over $12 million, while long positions accounted for $21 million of the total liquidation.
Nonetheless, the buyers are flooding the market with more funds to keep their positions open following the latest price actions. Other traders are opening new positions as open interest increased by 5%. Onchain stochastic are neutral. However, the relative strength index remains negative as ETH is overbought.
Ethereum Faces Impending Divergence
Ethereum’s price performance over the last seven days resulted in significant trajectory changes in some indicators. One such indicator is the moving average convergence divergence. The 12-day EMA halted its uptrend on Nov. 12 and has since been on the decline. If price performance remains flat or bearish, the bearish convergence is underway and nearing completion.
The metric is close to intercepting the 26-day EMA but slightly arched upwards due to the ongoing price trajectory. Nonetheless, a divergence may spell more decline for the apex altcoin.
Ethereum has a small CME gap between $3k and $3,100. Following the massive corrections, it may fill the space. The average directional index suggests a high chance of this happening as the asset loses its upward momentum.
Nonetheless, the Bollinger band shows room for more increases. The apex altcoin is trading below the upper band and may surge, retesting this key metric. The relative strength index dropped below 70 on Nov. 13 and remains below it. Currently at 64, the bulls are regaining composure, staging more rallies.
Currently off to a good start, Ethereum will look to resume its uptrend this week. While the risk of dropping below $3k remains high, it may break out of its trading pattern.
