Bitcoin price is struggling to stay above $39,000 per coin and as it sinks lower, an ominous bearish technical signal is triggering.

Bitcoin Selloff Prompts Possible Change In Momentum

Selling pressure driven by FTX’s estate dumping nearly $1 billion in Grayscale GBTC shares caused Bitcoin price to lose the $39,000 level today, currently trading around $38,900 at the time of this writing.

The selloff hasn’t fallen deep enough for a convincing breakdown of the key psychological level, however, a bearish crossover of a momentum technical tool could trigger additional downward price action.

The recent drop has caused the weekly LMACD to cross bearish. A bearish crossover is a sell signal that warns of a change in medium-term momentum.

Will The LMACD Confirm The Bearish Crossover?

The bearish crossover on the weekly LMACD isn’t confirmed until the weekly candlestick closes. The LMACD is the logarithmic version of the MACD indicator – which stands for Moving Average Convergence Divergence.

When the tool’s lines converge and cross, it produces a signal to take action. However, if the crossover doesn’t confirm and the two lines diverge instead, it tells a trader to stay in a position. In this case, Bitcoin would stay in the buy position until a bearish crossover appears later down the line.

Such bearish crossovers have the potential to stop a bull rally in its tracks. The LMACD crossed bearish around the 2018 peak, the 2019 rally, and at both 2021 double tops. It is worth noting, however, that BTCUSD crossed bearish in 2023, and in late 2020, but ultimately crossed back bullish and resumed a bull run. Another such scenario is possible, so even if the technical indicator crosses bearish, it doesn’t necessarily mean the end of upside for Bitcoin.

Crypto analyst Jaydee has outlined a scenario in which the XRP price could rise to as high as $20 at the peak of the next bull market. According to him, this price level is possible if certain factors are considered. 

What Will Facilitate XRP Price Rise To $20

Jaydee mentioned in an X (formerly Twitter) post that $20 is a “possible top” for XRP using the market cap as a marker. For this to happen, he also noted that there must be a structure break on the charts.

The analyst, however, is not holding his breath for that to happen. He further remarked that he was going to take profits once XRP was overbought on multiple higher timeframes. Interestingly, Jaydee had once shown his skepticism about XRP rising to between $10 and $15. As such, his latest analysis came as a surprise to some of his followers. 

Meanwhile, crypto analyst Egrag Crypto recently provided an analysis of XRP’s current state. He stated that things are looking bullish on the monthly time frame. He further hinted that a major pump was “brewing,” but there could be more move to the downside before that happens. This, he says, will be “enough to spook the weak hands.” 

The analyst also gave an insight into how low XRP could drop in another X post. He noted that XRP was currently in a critical zone and that a weekly close below the ascending triangle’s edge could trigger a price downturn to $0.34. On the other hand, if XRP were to close above $0.75, Egg believes that would invalidate his current setup.  

In the meantime, the analyst sees these current dips in the XRP market as an opportunity to accumulate more tokens while preparing for the pump that will “roll in fast mode.”

The Bottom For XRP’s Current Trend

The current belief among different crypto analysts seems to be that XRP is likely to decline further before it makes any parabolic move to the upside. Crypto analyst Ali Martinez had previously predicted that XRP could drop to $0.34 if it failed to hold above the $0.55 support level (which it has failed to do). 

Now, crypto analyst XRP Shark is also echoing almost similar sentiments as he shared his belief that the price ranges between $.35 and $0.45 could be the bottom area for XRP’s move to the downside. Once the crypto token drops to that price range, he predicts that a “violent move to the upside” will follow. 

As Egrag suggested, this move to the downside looks necessary to shake out weak hands before XRP experiences new highs. Crypto analyst Crypto Rover predicts that XRP will experience a “massive breakout” sometime in March. 

In an exciting turn of events, Shibarium, the Ethereum-based layer 2 blockchain of Shiba Inu, has witnessed yet another crucial milestone in its overall number of transactions carried out on the platform.

Shiba Inu Blockchain Latest Milestone

The total number of transactions on the layer 2 blockchain has skyrocketed since Shibarium was launched, surpassing several crucial milestones. In addition, the blockchain is gaining enormous traction and has seen widespread utilization from its community members.

The Shiba Inu blockchain recently reached another important benchmark after surpassing the 300 million transactions threshold. This achievement comes just five months after Shibarium was introduced by the Shiba Inu team.

Data from Shibariumscan.io reveals that the total number of transactions carried out within the platform is sitting at 304,137,502. These transactions were carried out by approximately 1.3 million wallet addresses.

Shibarium’s performance goes beyond the total number of transactions on the network. The platform shows that over 2.7 million blocks have been processed, totaling 2,788,561.

Despite the development, the network’s activity appears to be slowing down. The data from the network’s tracker shows that the average daily count is sitting at 2.69 million. This is a drop from the average 7 million transaction count it recorded throughout last month.

Shibarium’s latest milestone comes amidst a massive whale transaction that saw over 400 billion Shiba Inu tokens being moved between unknown wallets. According to data from Etherscan, the transaction totalled 419,872,915,864 SHIB, valued at a whopping $3.87 million.

The reports show that the unknown wallet, identified as 0xecfB3971, moved the aforementioned funds to another unknown wallet address, 0xd373B9. The move has since raised speculations around the community because both addresses are still unrecognized.

SHIB Community Celebrates The Latest Heights

Members of the Shiba Inu community have been celebrating the latest achievement as Shibarium transactions have topped 300 million. The team has also shared the accomplishment on the social media platform X (formerly Twitter).

Related Reading: SHIB Roars As Shibarium Hits 100 Million Transactions – Big Things Unfolding

In the X post, the team highlighted that the ShibArmy had taken Shibarium transaction volume to unprecedented heights. The Shiba Inu team has always attributed such heights to its stellar community. 

Furthermore, it stated that the Shibarium rollercoaster only goes in the “UP” trajectory. According to the comment, Shibarium’s transaction volume and other statistics are likely to rise continuously.

The post read:

SHIBARMY is driving Shibarium to new heights. This rollercoaster truly has only one direction: UP.

Currently, the price of Shiba Inu is still down despite the project’s milestone. SHIB is trading at $0.00000872, indicating a decline of over 4.50% in the last 24 hours.

Data from CoinMarketCap shows that Shiba Inu’s market cap is also down by the same percentage as its price. Meanwhile, although the price of SHIB is down, its trading volume is indicating an over 24% daily increase.

The Bitcoin price has plummeted below the $39,000 mark, the lowest level since December 2. This significant drop can be attributed to three main factors that have collectively contributed to the current market sentiment and price action.

#1 Selling Pressure From Grayscale’s GBTC Outflows

The market has been heavily influenced by the continuous outflows from the Grayscale Bitcoin Trust (GBTC). Bloomberg analyst James Seyffart commented on the severity of the situation, stating, “Woof. BAD day for Bitcoin ETFs overall in the Cointucky Derby. GBTC saw over $640 million flow out today. Outflows aren’t slowing — they’re picking up. This is the largest outflow yet for GBTC. Total out so far is $3.45 Billion.”

Nevertheless, the volume on the Bitcoin ETFs remained very strong, surpassing $2 billion, with GBTC accounting for over half of this volume. The total volume for the first seven trading days approached $19 billion.

Interestingly, while GBTC experienced significant outflows, the broader spot Bitcoin ETF landscape paints a different picture. Excluding Grayscale, the nine new ETFs have collectively amassed 95,000 Bitcoin ($3.8 billion), in stark contrast to the 65,000 Bitcoin ($2.9 billion) that flowed out of GBTC.

22,000 BTC have been from selling from the FTX Estate, meaning not flowing into others. While the cessation of this supply overhang is generally positive for the market, it remains crucial to monitor whether the outflows from Grayscale persist or intensify, even after the conclusion of the FTX-related sell-offs.

#2 Futures And Options Markets Cool Down

A significant contributor to Bitcoin’s price movement below $39,500 is the cooling of activity in the futures and options markets. Notably, the open interest in CME Bitcoin futures experienced a sharp decline, shedding over $1.64 billion following the approval of spot BTC ETFs, indicating a reduction in market leverage and speculative interest.

Crypto analyst Skew provided a nuanced analysis of the market dynamics, particularly focusing on the interplay between Bitcoin’s perpetual futures (perps) and the spot market. Skew noted, “Nothing too conclusive yet in perps market other than shorts becoming the dominant position in the market currently. Perp premiums often occurring during periods of spot limit selling into price. Spot premiums notably when perps push price into areas of limit bids on spot exchanges.”

This observation points to a shift towards bearish sentiment in the perps market, with short positions taking precedence. The analyst also highlighted the current market’s lack of volatility and urgency, attributing it to decreased open interest and a focus on spot market flows.

Further shedding light on the market sentiment, options analytics platform Greeks.live added insights into the options market, particularly the behavior of Bitcoin’s implied volatility (IV) and the volatility risk premium (VRP). They noted, “Bitcoin fell below the $40,000 as short-term IVs recovered. Overall VRP has risen, and the Skew curve is skewed towards put options.”

This shift towards put options signifies an increase in market participants hedging or betting on further downside, thus contributing to the bearish sentiment. However, Greeks.live also pointed out that despite the bearish forces and the presence of panic orders, the overall market is still witnessing a balanced game between bulls and bears.

#3 Sentiment Shift – Calls For $35,000 Get Louder

The third pivotal factor influencing Bitcoin’s price drop below $39,500 is a notable shift in market sentiment, emphasizing the need for a correction after a prolonged bullish period. Charles Edwards, the founder of Capriole Investments, articulated the market’s current state, highlighting the abnormality of the recent price trends and forecasting an inevitable return to volatility.

Edwards stated, “We’re still not here yet. This pullback is very overdue and lower is healthier.” He pointed out the rarity of the current market conditions, noting, “It’s now been over 232 days since Bitcoin had a 25%+ drawdown in the prior 12 months. The last time this happened was more than a decade ago, in 2011! The current low downside volatility period is NOT normal. These dips usually occur every 2-3 months. Volatility will return.”

The recent price correction, although perceived as a healthy and overdue adjustment by analysts, has nevertheless instilled a sense of panic among traders and investors. The market’s sentiment has taken a negative turn, especially as Bitcoin experiences a -20% dip, a movement partly attributed to the overhang of Grayscale’s supply.

The once robust bullish optimism has waned, giving way to louder calls for a further decline to $35,000 or even lower. This shift in sentiment is quantitatively reflected in the Bitcoin Fear & Greed Index, which has moved to a neutral position of 50, marking a significant departure from the extreme greed observed during the uptrend.

At press time, BTC traded at $39,219.

Now that Spot Bitcoin ETFs have been approved by the United States Securities and Exchange Commission (SEC), the crypto space anticipates more ETFs to enter the market, particularly Spot Ethereum ETFs. 

Despite this, analysts at JP Morgan, an American multinational financial service firm, have revealed a less than optimistic outlook for the potential approval of Ethereum Spot ETFs. 

Ethereum Spot ETF Approval Prospects

In a note to clients issued on Thursday, January 18, JP Morgan analysts led by Nikolaos Panigirtzoglou, the Managing Director at the financial service firm, expressed their reservations regarding the anticipated approval of Spot Ethereum ETFs by the SEC.

The analysts cited regulatory and judicial reasons as the basis for their prediction, asserting that the likelihood of Ethereum Spot ETF approval is no higher than 50%. 

“While we are sympathetic to the above arguments, we are skeptical that the SEC will classify ether as a commodity as soon as May,” analysts at JP Morgan stated. 

Just last week, the SEC delayed the approval of Fidelity’s Ethereum Spot ETF. The regulator postponed its decision date to March 5, 2024, stating it needed more time to evaluate Fidelity’s application. Additionally, the deadline for the SEC’s final decision on the Spot Ethereum ETF applications extends from late January to August 2024. 

The most decisive date that would give the crypto space a better outlook on the potential launch of these ETFs is January 25, the deadline for Grayscale’s Ethereum Spot ETF application. 

Earlier in June 2022, Grayscale took legal action against the SEC for its rejection of its Spot Bitcoin ETF. In August 2023, the asset management company emerged victorious in its lawsuit, after the US Columbia Court of Appeal ruled that the SEC was wrong to reject Grayscale’s Bitcoin ETF application. 

With the SEC’s recent approval of Spot Bitcoin ETF after months of legal and regulatory challenges, many crypto enthusiasts anticipate a lengthy regulatory process before the potential approval of Spot Ethereum ETFs. If Ethereum Spot ETFs are accepted by the SEC, then it would offer investors an unprecedented opportunity to gain exposure to the cryptocurrency without the need to own it. 

Why ETH Spot ETF Approval Hovers At 50%

Presently, the regulatory framework surrounding cryptocurrencies in the United States is still shrouded in uncertainty. This includes XRP, which suffered a lawsuit from the SEC after the regulator labeled it a security in 2020. Additionally, there have been many other cryptocurrencies the SEC has identified as a security. 

The potential approval of Ethereum Spot ETFs generally hinges on the SEC’s classification of the digital asset, whether it is a commodity or a security. In January 2024, the regulatory agency approved Ethereum futures ETFs, ‘implicitly’ accepting Ethereum as a commodity. 

If the SEC identifies Ethereum as a commodity, then the potential approval of an ETF application may be in sight. However, as JP Morgan analysts have stated, it may take a considerable amount of time before the SEC makes that decision.

The regulatory agency has continually taken an aggressive approach in its regulation of cryptocurrencies in the US. Following the approval of Spot Bitcoin ETFs, SEC Chairman Gary Gensler publicly declared that the agency still does not approve or endorse Bitcoin, labeling all cryptocurrencies as investment contracts subject to federal securities laws.

Celsius Networks, currently undergoing bankruptcy proceedings, has engaged in significant Ethereum transactions that are causing ripples within the digital currency landscape.

In the past 10 hours, on-chain analysts at LookonChain detected noteworthy transfers, including a 13,000 ETH deposit ($30 million) on Coinbase and an additional 2,200 ETH ($5 million) on FalconX. These transactions suggest a proactive stance by Celsius in addressing its ongoing financial challenges.

Celsius Sells $125M ETH, Maintains $1.3B Reserve

According to Arkham Intelligence, Celsius sold more than $125 million worth of Ethereum (ETH) coins between January 8 and January 12. The primary goal of this auction is to pay off creditors.

Dune Analytics also revealed a more widespread pattern of redemptions, with over $1.6 billion of staked Ethereum being redeemed during the same period. Since the Shanghai update last year, the amount of redemptions recorded is the highest.

The #Celsius wallet deposited 13K $ETH($30.34M) to #Coinbase and 2,200 $ETH($5.13M) to #FalconX again in the past 10 hours.

Currently, 2 staking wallets of #Celsius still hold 557,081 $ETH($1.3B).

Address:https://t.co/3gGOucC9gYhttps://t.co/zodN4gzVHKhttps://t.co/Jjt9fCN2Ej pic.twitter.com/E9DIZ9KDAH

— Lookonchain (@lookonchain) January 23, 2024

Despite facing financial constraints imposed by the court, Celsius still holds a substantial Ethereum reserve. This reserve amounts to over 557,000 coins in two staking wallets, with a total valuation of approximately $1.3 billion. The size of this reserve adds a layer of complexity to Celsius’ current financial situation and underscores the evolving narrative within the crypto space.

As part of its obligations to creditors, Celsius has been actively liquidating its Ethereum holdings. These auctions, aimed at paying off outstanding debts, are integral to Celsius’ bankruptcy proceedings.

The market has responded to these Ethereum transactions, resulting in a 4% decline in the price of ETH. The cryptocurrency slipped below the $2,350 mark, raising concerns among analysts, especially as ETH now wavers below its crucial demand zone ranging from $2,380 to $2,461.

Analysts predict that a failure to maintain this level could lead to a potential retreat towards the $2,000 mark.

Wealthy Investors Trigger Ethereum Profit-Taking

Santiment’s historical data reveals that significant transactions by wealthy investors, commonly known as whales, often trigger profit-taking activities among regular ETH holders. This phenomenon intensifies selling pressure and contributes to price declines.

Meanwhile, decreasing funding rates suggest an underlying optimism in the market, hinting at a possible cooldown in previously overheated perpetual markets. This situation leaves room for ETH to rebound once the selling pressure subsides.

As the bankruptcy drama of Celsius unfolds, the scrutiny on its Ethereum transactions and the resulting market dynamics will persist. Investors and observers are closely monitoring the situation, eagerly awaiting further developments and anticipating the broader implications for both Celsius and the crypto ecosystem.

Featured image from Shutterstock

XRP price is consolidating above the $0.520 support. The price could gain bearish momentum unless there is a close above $0.550 and $0.570.

XRP is showing bearish signs below the $0.550 and $0.570 resistance levels.
The price is now trading below $0.5420 and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance near $0.540 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
The pair start a fresh increase if it clears the $0.540 and $0.550 resistance levels.

XRP Price Aims Recovery

After a decent recovery wave, XRP price faced heavy resistance near the $0.6200 zone. The bears stepped in and managed to start a fresh decline. There was a move below the $0.600 and $0.570 support levels, like Bitcoin and Ethereum.

There was also a drop below the $0.550 support. The price tested the $0.5180 zone. A low was formed near $0.5178, and the price is now consolidating losses. There is also a key bearish trend line forming with resistance near $0.540 on the 4-hour chart of the XRP/USD pair.

The price is now trading below $0.5420 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.540 zone or the trend line. It is near the 23.6% Fib retracement level of the downward move from the $0.6238 swing high to the $0.5178 low.

The first key resistance is near $0.550. The next major resistance is near the $0.570 zone or the 50% Fib retracement level of the downward move from the $0.6238 swing high to the $0.5178 low.

Source: XRPUSD on TradingView.com

A close above the $0.570 resistance zone could spark a strong increase. The next key resistance is near $0.625. If the bulls remain in action above the $0.625 resistance level, there could be a rally toward the $0.680 resistance. Any more gains might send the price toward the $0.700 resistance.

More Losses?

If XRP fails to clear the $0.550 resistance zone, it could start a fresh decline. Initial support on the downside is near the $0.5180 zone.

The next major support is at $0.5120. If there is a downside break and a close below the $0.5120 level, XRP price might accelerate lower. In the stated case, the price could retest the $0.500 support zone.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now losing pace in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $0.5180, $0.5120, and $0.500.

Major Resistance Levels – $0.5420, $0.5500, and $0.5700.

Denver-based internet pastor, Eli Regalado, is at the center of a controversy surrounding an alleged crypto Ponzi scheme involving INDX coin. 

The self-proclaimed spiritual leader has come under scrutiny as Colorado’s securities regulator investigates his deceptive practices, which reportedly resulted in over $3 million in ill-gotten gains. Fortune magazine report shed light on the matter, exposing Regalado’s questionable actions and shedding light on the plight of the victims involved.

Pastor Regalado’s Deceptive Crypto Venture

According to Colorado’s securities regulator, Regalado, and his wife orchestrated a “small-scale swindle”, targeting hundreds of individuals with promises of extraordinary returns on their investments in INDX coin. 

Presenting his appeals with biblical undertones, using terms like “sowing” and “tithing,” Regalado convinced his online church followers that purchasing the cryptocurrency would yield a tenfold increase in their investments. 

However, the promised returns never materialized, and investors lost their “hard-earned” money. To compound matters, it is alleged that the Regalados diverted a significant portion of the funds to finance personal expenses, including home renovations and luxury purchases, further exacerbating the victims’ financial losses.

Despite the allegations and mounting legal troubles, Regalado chose to address the accusations head-on by posting a 10-minute video on the crypto project’s website.

In the video, he attempts to deflect responsibility, claiming that misappropriating funds was not solely his decision, but rather a result of divine guidance for a home remodeling project. 

Displaying a lack of understanding of financial concepts, Regalado haphazardly employs buzzwords like “leverage” and “liquidity” without demonstrating a clear comprehension of their meaning. 

Furthermore, Regalado boasts about the supposed success of the project, mentioning “$300 million of coins sown before the exchange went live.” However, the Colorado regulator clarifies that these coins have no value, primarily because they could only be traded on the Kingdom Wealth Exchange, an ill-functioning service operated by the Regalados themselves.

Colorado Authorities Take Action To Recover Funds

According to Fortune, the next steps in this ongoing investigation are expected to involve the state of Colorado seizing any remaining funds and returning them to the defrauded investors. 

Meanwhile, Regalado’s video attempts to invoke divine intervention, predicting that the INDX coin debacle will resolve itself miraculously through divine intervention in the financial sector.

According to CoinGecko data, the total crypto market cap has declined over 4.6%, reaching as low as $1.51 trillion on Monday.  However, when compared to one year ago, the cryptocurrency market has witnessed an impressive surge of 55.27%. 

At the forefront of the cryptocurrency market stands Bitcoin (BTC), the pioneering digital currency that continues to dominate the landscape. As of today, Bitcoin’s market cap stands at an impressive $795 billion, accounting for a substantial 47.66% of the total cryptocurrency market. 

Featured image from Shutterstock, chart from TradingView.com

Ethereum price extended losses and tested the $2,300 support. ETH is now attempting a recovery wave above the $2,340 level and might test $2,390.

Ethereum started a fresh decline below the $2,420 and $2,400 levels.
The price is trading below $2,400 and the 100-hourly Simple Moving Average.
There was a break above a connecting bearish trend line with resistance near $2,340 on the hourly chart of ETH/USD (data feed via Kraken).
The pair attempt a fresh increase if it clears the $2,390 and $2,400 levels.

Ethereum Price Revisits $2,300

Ethereum price struggled to start a fresh increase above the $2,550 and $2,580 resistance levels. ETH started a fresh decline and traded below the $2,400 support like Bitcoin.

There was a move below the $2,350 level. A new weekly low was formed near $2,302 and the price is now consolidating losses. There was a minor increase above the $2,330 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,479 swing high to the $2,302 low.

There was also a break above a connecting bearish trend line with resistance near $2,340 on the hourly chart of ETH/USD. Ethereum is now trading below $2,400 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,365 level.

The next hurdle could be $2,390 or the 50% Fib retracement level of the downward move from the $2,479 swing high to the $2,302 low. The next major resistance is now near $2,400. A clear move above the $2,400 level might start a decent increase. In the stated case, the price could rise toward the $2,480 level.

Source: ETHUSD on TradingView.com

The next key hurdle sits near the $2,500 zone. A close above the $2,500 resistance could start another steady increase. In the stated case, Ether price could rise toward the $2,650 zone.

Another Decline in ETH?

If Ethereum fails to clear the $2,390 resistance, it could start another decline. Initial support on the downside is near the $2,320 level.

The next key support could be the $2,300 zone. A downside break below the $2,300 support might send the price further lower. In the stated case, Ether could test the $2,250 support. Any more losses might send the price toward the $2,200 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $2,300

Major Resistance Level – $2,390

Since Ethereum (ETH) peaked at $2,717 in the last two weeks, the asset has experienced a gradual decline, culminating in its arrival at a key demand zone, which could be instrumental in determining its imminent price trajectory, according to a prominent crypto analyst.

Critical Support Zone Flags Continuous Bearish Move

Renowned crypto analyst Ali has pinpointed a critical demand zone for ETH, ranging between $2,388 and $2,460. The resilience of this support level could pave the way for an upward trajectory, offering Ethereum a much-needed respite from bearish pressures.

However, should Ethereum falter, a bearish slide to the next major support level of around $2,000 may be imminent. Such a decline would represent a significant drop of nearly 20% from its current price around the $2,300 mark, posing a stern test for Ethereum’s market upward stability.

#Ethereum Market Update: $ETH is currently in a key demand zone, ranging between $2,388 and $2,460. If this support holds strong, there’s a clear path ahead with minimal resistance, offering a potential for upward movement.

However, if #ETH fails to maintain this level, we… pic.twitter.com/F0HfyrSdGF

— Ali (@ali_charts) January 21, 2024

Over the past 24 hours, Ethereum has witnessed a noticeable 4.3% decrease in value, breaching Ali’s critical demand zone. Currently, ETH trades at $2,368, signaling a possibility of a further plunge from here.

This price dip is mirrored in Ethereum’s trading volume, which has seen a significant decrease from $19 billion last Monday to just over $10 billion today, indicating lesser trading activity and a shift in investor sentiment.

Ethereum’s Market Dynamics: Whales Buying Dip and Rising Dominance

The current market dip has not gone unnoticed by savvy investors. According to Lookonchain, a crypto analytics platform, a prominent Ethereum whale has capitalized on the opportunity, acquiring 3,600 ETH valued at around $8.9 million.

After the price of $ETH dropped today, this smart whale bought 3,600 $ETH($8.9M) back at a lower price 5 hours ago.

This whale is very good at buying $ETH at low prices and selling $ETH at highs.

The profit is ~$25.8M currently!https://t.co/UzXbheftr1 pic.twitter.com/DannZzsQVk

— Lookonchain (@lookonchain) January 19, 2024

This strategic move is part of a larger pattern observed in the whale’s trading history, marked by buying low and selling high. This tactic has reportedly amassed profits estimated at $25.8 million.

Amid this bearishness, Ethereum has shown resilience in terms of market dominance. A recent report by analytics firm Santiment reveals that Ethereum’s market share, relative to the total crypto market capitalization, has surged by roughly 22.4% in just one week.

This growth is complemented by a significant increase in active Ethereum addresses, with an average of 89,400 new addresses joining the network daily, reaching a peak of 96,300 new addresses in a single day.

These figures suggest a growing interest and engagement in the Ethereum ecosystem despite the current market conditions.

#Ethereum‘s price dominance continues to surge against #Bitcoin‘s, now +22.4% in a week. During this stretch, there have been 89.4K new $ETH addresses created per day, and 96.3K wallets just yesterday. Additionally, the 2nd largest market cap asset’s supply on

(Cont) pic.twitter.com/9nHCl6PJPy

— Santiment (@santimentfeed) January 16, 2024

Featured image from Unsplash, Chart from TradingView