Whales are going long on ETH Massive $1.2BN Position and ETH reserves reach new lows on Exchanges.
Bullish on-chain metrics that hint at short-term volatility to the upside for ETH
Is this the end of the crash for crypto and ethereum or are we going to see new lows? Maybe even a 1k$ eth?
Even though I'd really love to get my hands on some $1k eth, I don't believe we will see that soon.
Let me share with you why I believe the sell-off for ETH is over at least for the short term. Various On-chain metrics are telling a bullish story.
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All exchange reserves broke below an important support level. 20.7m ETH → People are moving their eth off of exchanges. But where is this eth going?
Well apart from DeFi this Eth is going to ETH 2.0
How much? A lot 100k ETH = $195m
Over 100k ETH staked in ETH 2.0 on the 22 june 2021. That means the ETH staked amount exceed 5% of the circulating supply.
Do you know who else is bullish about ETH?
The whales.
large ETH deposits to derivative exchanges resulted in an increased risk of short-term volatility. Whales use coin-margined contracts to open large positions against ETH as collateral. On June 22, over 170K ETH were deposited into derivative exchanges in a single hour, and close to 950K in a single day. At the same time, Bitfinex whales opened over 500K long ETH contracts.
I will be monitoring BTC inflows onto exchanges as that will give me a signal if a short-term correction is going to happen. I warned everyone about a correction in the 18th of June Newsletter.
This is what I posted:
This is what happened to the price afterwards: ( the yellow box is where my warning newsletter was sent)
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Cheers!
Kierin