Ethereum Price Pulls Back Amid Whale Sell-Off and ETF Outflows

Ethereum’s price has retreated to $3,058 as of Monday, November 18, after reaching a monthly high of $3,445. This 11% drop marks a local technical correction. The decline is attributed to continued selling by whales, with data showing over $300 million in ETH tokens moved in the last 24 hours.

Whale Activity and ETF Outflows

The largest whale movement involved 50,000 ETH tokens, valued at over $153 million, transferred to Kraken with a transaction fee of $12.80. Another notable whale moved 15,579 tokens worth $47.8 million to Coinbase. Typically, moving tokens to exchanges is the initial step in liquidating investments.

Additionally, Ethereum’s price dropped as spot ETFs experienced outflows for two consecutive days, totaling $59.8 million on Friday. While these ETFs have achieved inflows worth $178 million, this is significantly lower compared to Bitcoin’s $27 billion.

Blockchain Performance and DEX Industry

The Ethereum blockchain has underperformed other smaller networks in the DEX industry. The volume handled in its DEX networks dropped by 4.7% in the past 24 hours to $850 million. In contrast, Solana handled $5.92 billion, while Base, BSC, and Arbitrum handled $1.28 billion, $1.27 billion, and $992 million, respectively.

Analyst Optimism and Technical Analysis

Despite the current downturn, some analysts remain optimistic about Ethereum’s long-term prospects. One analyst expects ETH’s price to ultimately reach $10,000, implying a 226% rally from the current level.

Other analysts point to Ethereum’s deflationary nature and the potential for staking in ETFs as catalysts for future growth.

From a technical perspective, the daily chart shows Ether forming a golden cross pattern as the 200-day and 50-day Exponential Moving Averages are about to form a bullish crossover. The recent sell-off has also started to lose momentum at the 50% Fibonacci Retracement level, increasing the likelihood of a bounce back in the coming days.

Key Takeaways and Future Outlook

Key points to consider:

  • Ethereum’s price has pulled back amid whale sell-offs and ETF outflows.
  • The blockchain has underperformed other smaller networks in the DEX industry.
  • Analysts remain optimistic about Ethereum’s long-term prospects, citing its deflationary nature and potential for staking in ETFs.
  • Technical analysis suggests a potential bounce back in the coming days, with a target of $3,447 and a possible break above to $3,972.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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