- Ethereum’s consolidation reveals reduced interest from whales as the market grapples with uncertainty.
- Assessing the state of demand as currency flows fall to 2024 lows.
Ethereum [ETH] has been stuck in a consolidation phase for three months. But is there hope for a possible breakout from the consolidation zone in November? Here’s a look at how ETH has done so far.
Ethereum crushed bullish expectations since August after the price failed to stage a substantial recovery following the crash since May. However, the lower highs since August indicate that significant accumulation has occurred over the past three months.
Source: TradingView
Despite higher lows, the price has struggled to break above $2,800 over the past three months. This outcome reflected the current state of demand in the market, especially in the whale category.
The flows of large Ethereum holders have decreased since late October. However, outflows were significantly lower than inflows, indicating that demand is about to ease selling pressure.
A major reason for this was that the selling pressure in recent days pushed for a retest of ETH’s rising support in recent days.
Source: IntoTheBlock
The drop in outflows from large holders indicates that whale selling pressure has subsided. This could pave the way for a possible pivot. However, the decrease in the influx of large keepers also indicates less interest from whales.
Is Ethereum Demand Making a Comeback?
While large flows of shareholders didn’t necessarily indicate a revival of excitement, the buying and selling volume does reveal something interesting. Ethereum buying and selling volume registered a huge spike on November 1, with buying volume dominating.
Source: HyblockCapital
The spike in buying volumes may indicate the possibility of renewed interest in ETH this month, although that remained to be seen. Part of the reason for this observation could be that investors have become cautious due to the uncertainty surrounding the election period.
Currency flows responded to the current level of uncertainty by falling to their lowest level yet in 2024.
Source: CryptoQuant
Currency inflows were significantly higher than currency outflows. The latter was at 49,890 ETH at the time of writing, while the former was at 67,737 ETH in the last 24 hours.
Read Ethereum’s [ETH] Price forecast 2024–2025
Based on all the above observations, it was clear that Ethereum’s price action was a reflection of muted investor sentiment. However, the consolidation suggests that we could see renewed interest after the US elections.
However, the outcome of the election could have a negative or positive impact depending on which candidate wins.
Credit : ambcrypto.com
