ETH’s Price Journey: Unraveling the Influence of Institutional Forces

ETH is currently not looking cheap. After rising to $ 3,600 earlier in the month, the price hit a cap of $ 3,640, a resistance level known since mid-September.

ETH 4-Hour Price Chart | Source: Tradingview

This resistance has been tested a few times over the past week and is now suggesting a possible correction. While there is no negative impact on the upward structure, the possibility of a drop to $ 3,000 can be attributed to fundamental factors, the most important of which is the organization.

The ETH bullfight is still very intense

ETH price (green) and exchange / non-exchange whale ratio (pink) | The source: mood

It is important to note that a number of on-chain indicators for ETH are still heavily bullish. According to Santiment, the top 10 unlisted whale addresses continue to accumulate and block more ETH, in contrast to the top 10 exchange addresses. That’s a good bullish sign.

ETH price (green) and daily active addresses (gold) | Source: Santiment

The daily number of active ETH addresses continues to show a bullish divergence, as the ETH price has been falling since September and the number of active addresses in the charts continues to increase. Overall, the on-chain indicators remain positive and a slide towards $ 3,000 could also be lucrative for the long-term picture.

What do surveys and cash inflows say?

follow opinion poll In CoinShares Research’s most recent bimonthly fund manager, almost 42% of investors have held ETH to own the most attractive growth curve.

The survey shows nearly $ 440 billion in assets under management, and one of the most common reasons ETH is expected to grow is the diversification of the network.

In contrast, the recent weekly inflows from Coinshares paint a different scenario.

Cash inflows on assets | Source: Coinshares

Every cloud has a silver lining?

The data shows that ETH has a small outflow of $ 13.5 million, indicating institutional withdrawals at the moment. Meanwhile, Bitcoin has strong inflows of $ 225 million.

Here institutions can really push the price down to $ 3,000, but only to bounce back later. Accredited investor behavior must be understood from a long-term perspective. Unlike retail investors, institutions do not panic in the market and are more likely to buy when the asset has hit a local low or a liquid zone.

Eternal ETH futures contract | Source: trade view

The blue area on the chart is the current liquidity zone between $ 2,700 and $ 3,000. In essence, it could be the best getaway for ETH as institutions could try to fill pockets in this price range. However, the price can move above it, so it is important to do your own research in order to make the right decision.

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Minh Anh

According to AMBCrypto

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