- Institutions sold $105 million worth of ETH during the latest correction
- On-chain data suggests the decline could be a buying opportunity before a new rally begins
Four whales, including prominent institutional investors, participate in the sale of some Ethereum [ETH] Holdings decreased as altcoin prices collapsed on the charts. In fact, ETH has fallen by more than 7% in just 24 hours.
According to Lookonchain, trading company Cumberland transferred a total of 17,206 ETH to the exchange. At the time of the transaction, the coin was valued at $57.3 million. FTX also deposited $8.33 million worth of ETH to Binance. Finally, the two other institutions together sold his ETH for $39.92 million.
Source:X
Only myopic people may be affected
Whales sell assets for a variety of reasons. For some, it may be a regular profit-taking event. For others, it could be a way to exit a cryptocurrency after its performance declines. However, this altcoin does not seem to fit into this category.
At the time of this writing, AMBCrypto was unable to confirm the reason for the parties’ sale. But one thing is for sure: the decline played a big role in the price of Ethereum dropping to his $3,169. At the time of writing, ETH was valued at $3,262, indicating a slight recovery for the cryptocurrency. However, it is important to see if the cryptocurrency can sustain this modest upward trend.
To do this, AMBCrypto looked at several metrics that can influence the value. First on the list was the mean dollar investment age (MDIA).
MDIA is the average age of coins held in the same wallet. If the metric increases, it means that many coins are becoming less active and staying in the same place for a longer period of time. On the other hand, a decline in MDIA means that older coins are moving.For Ethereum, on-chain data from Santiment revealed The 90-day MDIA has skyrocketed.
Historically, significant declines in indicators have been accompanied by local highs. Therefore, the recent rally suggests that ETH may be undervalued, and the latest correction could be an opportunity to buy low before a potential rally begins.
Source: Santiment
Is the next path great?
Another metric analyzed by AMBCrypto is network growth. This metric measures user adoption over time. Increasing this value means the project is gaining momentum. If this value is decreasing, it means the project is losing momentum.
On April 12th, Ethereum’s network growth was 128,000, indicating that many new addresses interacted with the project.
However, prices seem to be coming down caused That number drops to 36,100. If network growth improves, demand for ETH could lead to higher price volatility.
Conversely, if the indicator declines, the value may become stagnant. Furthermore, the number of copies published per day decreased to 230,000 copies, increasing the outlook for a decline in usage.
Source: Santiment
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That being said, a decrease in circulation could be a good thing for ETH as it could be a sign that selling pressure is decreasing. If the number of coins in use continues to decline, the price of ETH could break out of the terrible state it has been in over the past 24 hours.
