Ethereum (ETH) has experienced a significant price decline, with its value dropping over 20% in the past month to currently trade at $2,551. This downturn has caused large holders, or whales, to gradually reduce their trading activities.
According to IntoTheBlock, the past 30 days have seen a 5% decrease in daily transactions worth between $1 million to $10 million, and a 45% drop in transactions valued above $10 million. This decline in activity indicates cautious behavior among large Ethereum holders.
Additionally, the netflow of large holders has plummeted by 77%. The large holders' netflow measures the difference between the amount of ETH these whales buy and the amount they sell over a specific period. A drop in this metric usually signals whale distribution and bearish market sentiment.
The bearish outlook is further supported by the setup of Ethereum's Parabolic Stop and Reverse (SAR) indicator, which currently shows a downtrend. The Moving Average Convergence Divergence (MACD) indicator also suggests a strengthening downtrend as the MACD line nears a cross below the signal line.
If the selling pressure continues, ETH's price may drop toward its August 5 low of $2,112. Conversely, if buying activity picks up, the price could potentially rally to $2,867.
