Ethereum Likely to Dump When the Following Happens, CryptoQuant Chief Warns
Freshly shared analytics data shows that despite the rise in Ethereum OI close to an all-time high this year, there is a strong risk of the ETH price dumping as the market faces a big inflow of users.
“ETH is likely to spike, then to drop”
According to the recent tweet of the CEO and co-founder of the on-chain data aggregator CryptoQuant Ki Young Ju, there is a rising activity of users with ETH across centralized crypto exchanges.
Even though, many are withdrawing their coins, Ju says, there is still a big risk of the second largest crypto dumping after a price surge. He explains it by the fact of too many investors beginning to participate in the ETH market.
When the number of new investors and their activity goes well beyond average, Ethereum is likely to rise first and then to drop, CryptoQuant CEO warns.
If too many investors participate in the market, the price is likely to spike and then drop.$ETH exchange outflow TX count implies user activeness across exchanges.— Ki Young Ju 주기영 (@ki_young_ju) August 11, 2021
When the data goes far from the average, the price is likely to dump, forming a blow-off top pattern. pic.twitter.com/FqoBx5HNsz
Earlier, he also warned investors about the Bitcoin Exchange Whale Ratio hitting 90%. Ki Young Ju explained that a rise of this metric shows an increase of selling pressure from crypto whales.
Ethereum swaps OI surges to close to an all-time high
Data provided by the popular analytics firm Glassnode shows, that despite a massive rise of open interest for Ethereum perpetual swaps, there are still many short trades open.
Previously, U.Today reported that the Ethereum swaps OI rose to a whopping $8 billion and this rise is likely to be a confirmation of an upside trend for the second biggest crypto by market cap.
Ethereum perpetual OI is reaching the higher levels comparable to its ATH for this year.— Lex Moskovski (@mskvsk) August 11, 2021
Funding is still tolerable as there is a great deal of shorts.
Not everyone is long and strong yet. pic.twitter.com/6eisUeHoGY
Ethereum keeps trading above $3,000
At the time of writing this, Ethereum is changing hands at $3,228 for the first time since late May, according to the data from CoinMarketCap.
As a reminder, ETH recovered above the $3,000 level on Saturday, July 7 and has been trading above this support since then.
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