- Ethereum consolidation reveals diminishing whale interest as the market grapples with uncertainty.
- Assess the state of demand as trade flows fall to their lowest level in 2024.
Ethereum (ETH) has been stuck in a consolidation phase for three months. But is there any hope of a possible exit from the consolidation zone in November? Here’s a look at how ETH has performed so far.
Ethereum has crushed bullish expectations since August after the price failed to recover substantially, following its crash since May. However, its lowest levels since August suggest that significant accumulation has taken place over the past three months.
Source: TradingView
Despite the higher lows, the price has struggled to rise above $2,800 over the past 3 months. This result reflects the current state of demand in the market, particularly in the whale category.
Flows from large Ethereum holders have been declining since late October. However, outflows were significantly lower than inflows, suggesting that demand may be about to reverse the selling pressure.
One of the main reasons for this is that the selling pressure of the past few days has pushed for a retest of ETH’s ascending support over the past few days.
Source: In the block
The decline in exits from large holders suggests that selling pressure from whales has lessened. This could pave the way for a possible pivot. However, the decline in inflows from large holders also indicates less interest from whales.
Is demand for Ethereum making a comeback?
While large holder flows don’t necessarily indicate renewed enthusiasm, the volume of buying and selling reveals something interesting. Ethereum buying and selling volume saw a massive spike on November 1, with buying volume dominating.
Source: HyblockCapital
The increase in purchasing volumes could indicate the possibility of renewed interest in ETH this month, although this has not yet been seen. This observation is partly explained by the fact that investors have been reluctant due to the uncertainty surrounding the election period.
Foreign exchange flows have responded to the current level of uncertainty by falling to the lowest levels seen so far in 2024.
Source: CryptoQuant
Foreign currency inflows were significantly higher than currency outflows. The latter stood at 49,890 ETH while the former had 67,737 ETH in the last 24 hours at the time of writing.
Read Ethereum (ETH) Price Forecast 2024-2025
Based on all the observations above, it was clear that Ethereum’s price action was a reflection of muted investor sentiment. The consolidation, however, suggests that we could see a surge in interest after the US election.
However, the outcome of the elections can have a negative or positive impact depending on which candidate wins.
