Ethereum risks correction to $3,600 as $1 billion worth of ETH floods exchanges
CRYPTOS | 03/14/2024 14:23:39 GMT
Over $1 million worth of Ethereum hit exchanges in March 2024, ahead of the Dencun upgrade.
Whales have consistently taken profits on their Ether holdings, to the tune of $7.36 billion in March.
ETH price could correct to $3,622 as technical indicators turn bearish and signal decline in Ethereum is likely.
Ethereum (ETH) price is at a risk of decline, according to technical indicators and on-chain metrics. A large volume of Ether hit exchanges in March, and ETH holders realized over $7 billion in profits. The altcoin is trading sideways, with Ethereum price at $3,922 at the time of writing.
Also read: Base and Optimism become cheaper than Solana as Ethereum Dencun upgrade empowers L2 chains
Ethereum price at risk of decline: On-chain perspective
Crypto exchanges have noted Ether token inflows worth $1.02 billion in March 2024. The mass inflow of Ethereum is accompanied by profit-taking activities of large wallet investors. The chart below shows the inflow spikes throughout March.
Supply on exchanges and Ethereum exchange flow. Source: Santiment
Data from crypto intelligence tracker Santiment reveals that there have been spikes in whale transactions valued at $100,000 and more. Whales have likely realized gains consistently in Ethereumâs uptrend, as shown in the Santiment chart below.
Whale
Whale transactions valued at $100,000 and higher, Network Realized Profit/Loss. Source: Santiment
On-chain metrics signal there is likely an increase in selling pressure on ETH and Ethereum price could crumble if holders continue realizing gains in the coming weeks and months.
Ethereum price could nosedive to $3,600: Technical analysis
Ethereum price hit its 2024 peak of $4,093.92, on March 13, following the successful rollout of the Dencun upgrade. As Ethereum rallied towards its new year-to-date high, ETH holders kept up their profit-taking.
