Ethereum Dips Below $3400 Amid Market Pullback: Is This the Bottom?
Whale activity significantly impacts cryptocurrency prices, and recent analyses have highlighted this intriguing trend. Additionally, a crucial ETH indicator suggests that investors might soon witness a price surge.
On the 28th, cryptocurrency prices experienced another pullback. Bitcoin (BTC) fell over 1%, dropping below $61,000, while Ethereum (ETH) declined by 2%, falling below $3,400. Currently, Ethereum is trading at $3,403.6, with a market capitalization exceeding $412 billion.
After several days of adjustment, Ethereum’s price has finally turned bullish. The Pi Cycle Top indicator shows that ETH has reached the market bottom, suggesting a bull market might be imminent. If this holds true, ETH could soon reach $5,000.
However, some market indicators remain bearish on the token. For example, Ethereum’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) are consolidating near their neutral points. Nevertheless, the Money Flow Index (MFI) is moving north, indicating bullish momentum and suggesting that prices may continue to rise.
CryptoQuant analyst and author BlitzzTrading recently published an analysis highlighting a unique trend. According to the analysis, ETH prices have significantly dropped as Ethereum reserves have surged. For instance, on September 28th, Bitmex exchange reserves saw a sharp decline, followed by an increase in ETH prices.
This correlation between ETH and Bitmex implies that when Ethereum whales buy through Bitmex, reserves decrease. Conversely, when they sell, Bitmex reserves increase. As of now, Bitmex’s ETH reserves remain relatively low.
