🌎 Bullish Signs for Ethereum Despite Recent Price Decline

On-chain indicators currently suggest a bullish outlook for Ethereum as whale activity around the asset shows a decline.

Ethereum Price and Market Cap

Ethereum has decreased by 3.8% in the past 24 hours and is now trading at $2,620. The asset’s market cap stands at $315 billion. Despite the price drop, ETH’s daily trading volume has increased by 3%, reaching $15.6 billion.

Open Interest and Funding Rates

Data from Santiment indicates that Ethereum’s total open interest has dropped from $5.28 billion on Aug. 12 to $5.05 billion. Generally, a decline in open interest could lead to lower price volatility due to fewer liquidations.

Additionally, the total funding rates for ETH have fallen below zero for the first time since October 2023, currently standing at negative 0.0002%. Historically, a negative funding rate has often led to short-term bullish momentum for Ethereum, despite trader expectations of a price fall.

Whale Activity and RSI

According to Santiment, whale transactions involving at least $100,000 worth of ETH have been decreasing steadily over the past three days, dropping from 5,371 on Aug. 12 to 4,346 unique transactions.

The Ethereum Relative Strength Index (RSI) shows that the asset is slightly oversold, currently hovering around the 42 mark. It’s crucial to note that further selloffs could trigger fear, uncertainty, and doubt (FUD), pushing the ETH price even lower.

Reasons Behind the Price Decline

One significant factor behind the recent decline in ETH price is the selloff by Jump Trading. The company has accumulated over $64 million worth of ETH tokens from various platforms and appears ready for sale.