After weeks of rallies, Ethereum saw some changes in its price movement for the first time yesterday. In fact, the same was the case with Bitcoin, because while it fell to $ 46,000, Ethereum hit $ 3,200.
Ethereum is falling behind?
Not completely. Since the second generation cryptocurrency rose by almost 80% In the past few weeks, it only makes sense that some fixes will show up along the way. In line with this, ETH declined 5% yesterday, recording its highest one-day decline since July 8th.
More notably, however, was the Parabolic SAR, moving its position above the candlesticks for the first time in a month. This is a sign that a downtrend is being initiated in the market.
Additionally, the Relative Strength Index (RSI) has also fallen as the MACD placed a bearish crossover on the way. These are strong indicators of a correction. However, investors prepared for this before these signs even appeared.
The sale started earlier and so far 1.4 million ETH, valued at over 4.4 billion US dollars, has flowed back into the exchange wallets. Surprisingly, however, that trend had changed yet again at the time of writing.
What are investors doing now?
For now, investors are back to HODLing. During the corrections, people usually mainly sell, but since these corrections are not visible at the moment, they buy more ETH again.
This is an effect of the recent rally where everyone was watching the profit potential. And if there is a rally in the future, they could take profits after moving sideways for a long period of time.
This claim can be backed up by the bid-ask spread chart, which showed the buy and sell orders and the average price at which they were placed. At the time of going to press, the spread showed higher demand for buying than for selling, at least 11,000 ETH higher purchases.
Finally, the spent output profit ratio, a metric that shows whether the market is bullish or bearish, also goes down. This comes after the indicator hits a 3-month high of 1.11. In summary, as an investor, one cannot expect Ethereum to become overtly bearish. However, it would be wise to prepare for some price declines.