The ‘Uptober’ momentum in the market is currently waning, with both Bitcoin and Ethereum pulling back from crucial price points. This downturn was somewhat expected, as whales tried to take advantage of opportunities to secure their profits and exit the market. As a result, ETH’s price has fallen dangerously close to its breakout point, leaving traders confused about its trajectory ahead.
Whales caused a huge influx
Whales finally revealed their pump-and-dump strategy, highlighting the Uptober trend. Today, Ethereum’s price has undergone significant prolonged liquidation and strong inflows, indicating that whales have left and secured their profits.
Coinglass data shows that $28 million worth of long positions were liquidated today after the ETH price fell below $1,725. As a result, selling pressure intensified and the altcoin fell to a low of $1,670.
Interestingly, whales have successfully implemented their strategy, evidenced by a spike in Netflow, according to data from IntoTheBlock. Since Netflow illustrates the difference between inflows and outflows, an increase in this measure indicates a predominance of inflows over outflows, indicating that ETH is likely to be sold on exchanges. Netflow is currently at 46K ETH.
Moreover, the Netflow ratio of large holders to the Netflow exchange has increased to 4.65%, implying that whales are the main drivers of the inflows and Netflow spike, indicating selling sentiment in the ETH price.
Ether futures-based ETFs also provided the selling pressure, as they got off to a slow start with the launch of nine ETFs, offering varied exposure to ether and bitcoin futures. Valkyrie’s Bitcoin Strategy ETF is adapting its strategy to include ether, while newcomer VanEck’s Ethereum Strategy ETF traded about 25,000 shares, raising a total of about $425,000 on its first day. This was noticeably muted compared to ProShares Bitcoin Strategy ETF’s $1 billion trading volume on its first day in October 2021.
What’s next for the ETH price?
The price of Ether failed to rise above the USD 1,750 level as the whales’ exit caused a sharp decline on the price chart. ETH price recently fell below the EMA20 trendline, and the bears are now preparing for a downtrend as the bulls face low buying confidence. At the time of writing, ETH price is trading at $1,646, down more than 3.5% from yesterday’s price.
The 20-day EMA at $1,675 is trending down, and the relative strength index (RSI) is falling below the midline, indicating bearish dominance. Sellers are currently trying to eliminate the bullish hope by sending the price below the EMA100. However, a recovery above the trendline will increase the chances of a recovery rally above $1,700. Should this happen, ETH price could aim to rise above $1,750.
However, sellers will try to hinder the recovery. To dampen the positive momentum, they need to pull the price below the downside line. Consequently, the price could extend its presence within a bearish range, testing the support at $1,530.