On-chain indicators look bullish for Ethereum as the whale activity around the asset declines.

Ethereum declined by 3.8% in the past 24 hours and is trading at $2,620 at the time of writing. The asset’s market cap is currently sitting at $315 billion. ETH’s daily trading volume, however, increased by 3%, reaching $15.6 billion.

According to data provided by Santiment, the Ethereum total open interest decreased from $5.28 billion on Aug. 12 to $5.05 billion at the reporting time. Usually, lower price volatility would be expected with the decline in an asset’s open interest due to a lower amount of liquidations.

Data from the market intelligence platform shows that the total funding rates aggregated by ETH plunged below the zero market for the first time since October 2023 — currently sitting at negative 0.0002%.

Historically, a negative funding rate has triggered a short-term bullish momentum for Ethereum despite traders expecting a price fall.

Per Santiment, the number of whale transactions consisting of at least $100,000 worth of ETH has been constantly decreasing over the past three days — falling from 5,371 on Aug. 12 to 4,346 unique transactions over the past day.

Moreover, the Ethereum Relative Strength Index is also showing that the asset is slightly oversold — currently hovering at the 42 mark. It’s important to note that a further selloff could trigger FUD and take the ETH price further below.

One of the main reasons behind the recent decline in the ETH price is the Jump Trading selloff. The company has already accumulated over $64 million ETH tokens from different platforms and looks ready for sale. 

Source : crypto.news - Aug 15, 2024