Is the short-term price campaign of ETH linked to Bitcoin?

When Bitcoin fell below the $ 61k region, ETH couldn’t hold out for long either. At press time, ETH is trading at $ 4,210, down 3.2% daily and nearly 11% weekly.

So how did ETH perform right after the weekly high at USD 4,643? Short-term bearish signs may have appeared before price moved south.

Signs You Can’t Overlook

First, ETH is consolidating significantly after its ATH on the 11th. As the price candles on the daily chart closed in the red for almost a week, there were also some abrupt movements in the ETH supply on the stock exchange.

On November 14th, just days before the top altcoin fell more than 10%, more than 100,000 ETH (nearly $ 450 million) was withdrawn from the exchanges.

The source: KryptoQuant

This massive outflow can be interpreted in two directions: a long-term bullish scenario and a short-term bearish scenario (what is happening).

The first scenario shows the demand for ETH from bigger players at current prices, which is a good sign. But it can also be used to conclude that a whale has stopped buying, and when purchasing power falls, so does the short-term price.

In a larger context, however, the supply of ETH on the stock exchanges is currently 13% and decreases with the price. A year ago this was 23.29% and a decrease of almost 50% is a sign that ETH is safely switching to cold wallets, which are related to DeFi and HODL.

The source: Sanbase

The short-term fate of ETH

While there are some signs of long-term upside, there are ongoing concerns that ETH will retest the $ 4,000 mark when it tested $ 4,100 on Nov. 16. Recently, however, ETH has seen one of the greatest days for coins of all time, with 1.82 million ETH for the first time in five years.

Age of coin usage (pink) | The source: mood

Although this move could lead to price declines in the near future, as Santiment reports, there is nothing to worry about. It seems that the ETH move is due to internal transfers between Kraken wallets and, at least for now, won’t cause much selling pressure.

In addition, the correlation between ETH and BTC is heading towards an all-time low, although the two upper coins have fallen together. If you look at the graph, the previous all-time low correlations are good for the price of ETH, as could be seen at the end of April and June.

Correlation between ETH and Bitcoin (green) | The source: IntoTheBlock

However, as Bitcoin continues to fall, the market seems to be weakening overall in price. ETH price also appears to be trending down as the daily RSI plunges almost vertically. In addition, the price on the daily chart is also falling below the 20 MA which will be an important level in the short term and moving above it will ensure a rebound.

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