the high spot volume, favorable spread for futures contracts and major traders buying the dip are all indications that the price of the Ethereum digital currency (ETH) should see a continuation.
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After dropping 27% over three days, the price of Ethereum (ETH) finally reached a low of $ 1,040 on January 22nd.
The sharp correction resulted in the liquidation of $ 600 billion in futures contracts, but interestingly enough, Ethereum's price bounced to an all-new high even as Bitcoin price is trading in a slight downtrend.
and according to Coin Telegraph, the significant increase in transaction volume and locked value in the decentralized finance sector is the reason behind Ethereum's staggering rise.
To determine if the last batch reflects a potential local peak, we'll take a closer look at the flow data on the string and derivatives.
Cash withdrawals indicate whale accumulation
Increased withdrawals from exchanges can be the result of several factors, including hoarding, generating returns and sending currency buyers to cold storage.
a constant flow of net deposits usually indicates an urge to sell in the short term. On the other hand, net withdrawals are generally associated with whale accumulation periods.
Although there has been some discussion about whether part of this launch for Ethereum was an internal switch between cold Bitfinex wallets, there was a clear net trend of drawdowns during Last month. Despite these rumors, the data points to a build-up.
This data also coincides with the total closed value (TVL) of decentralized financing reaching $ 26 billion at all, indicating that investors have chosen to take advantage of lucrative return opportunities Located outside the central stock exchanges.
Looking at the Ethereum data on the chain indicating that whales are hoarding, along with the healthy futures price difference, the market structure appears reliable.
