Ethereum (ETH) Whales Reduce Positions as Price Eyes August 5 Lows

Leading altcoin Ethereum has seen a significant price decline. Currently trading at $2,551, ETH has dropped by over 20% in the past month.

As the price of ETH continues to decline, whales have gradually reduced their positions in the past few weeks. This is evident in the decreasing count of large transactions.

According to IntoTheBlock, the daily count of ETH transactions ranging from $1 million to $10 million has dropped by 5% over the past 30 days.

Meanwhile, the daily count of larger transactions valued above $10 million has also decreased significantly by 45% during the same period.

This coincides with a 77% plunge in the netflow of large holders for Ethereum (ETH). Large holders, also known as whales, are those who own over 0.1% of the asset's circulating supply.

The large holders’ netflow measures the difference between the amount of ETH that these whales buy and the amount they sell over a specific period.

When the large holders’ netflow metric drops, it indicates whale distribution, which is often a bearish signal. This usually precedes further price declines, as reduced whale activity can negatively impact market sentiment.

On the one-day chart, the bearish outlook for Ethereum (ETH) is reinforced by the setup of its Parabolic Stop and Reverse (SAR) indicator. Currently, the indicator's dots are positioned above the coin's price, signaling a downtrend.

The Parabolic SAR is a tool used to identify potential trend direction and reversals. When the dots appear above an asset's price, it indicates that the market is in a decline and that the asset's price may continue to fall.

Moreover, Ethereum's Moving Average Convergence Divergence (MACD) is showing bearish signs, with the MACD line (blue) nearing a cross below the signal line (orange). This crossover typically suggests a strengthening downtrend, often interpreted by traders as a signal to consider selling or taking profits.

If selling pressure intensifies, ETH's price could drop toward its August 5 low of $2,112. However, if the market trend shifts and buying activity picks up, the price could potentially rally to $2,867.

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