Ethereum enthusiasts on the fence about buying the dip

AmbcryptoPublicado a 2022-11-10Actualizado a 2022-11-10

Resumen

Ethereum experienced a sizable discount this week as the latest FTX-related events wreak havoc on the market. ETH reverted to price levels below $1,200 and the last time it was within this range was in July.

Ethereum [ETH] experienced a sizable discount this week as the latest FTX-related events wreak havoc on the market. ETH reverted to price levels below $1,200 and the last time it was within this range was in July.

ETH, so far, dropped by as much as 30% this week courtesy of the ongoing market crash. Many traders were wondering whether this was a good time to buy back or to wait until the sell pressure witnessed a slowdown. But before traders make a decision, here are some recent observation that may help provide more clarity.

ETH Whales are buying at discounted prices

Glassnode researchers observed a continued increase in the number of addresses holding 32 ETH or more. Why is this important? Well, 32 ETH is the minimum requirement to run a validator node. Operating an Ethereum validator node can be quite lucrative. It thus, made sense why many aspiring validators were taking advantage by accumulating at lower prices.

Glassnode also reported a continued increase in the total value of ETH locked in ETH 2.0 deposit contracts. Furthermore, the same report revealed that ETH 2.0 deposit contracts reached a new all-time high at 14.8 million ETH.

Source: Glassnode

The total value staked in ETH 2.0 also increased despite the bearish market conditions. This was a sign that ETH holders were not just buying the dip but staking to take advantage of growth opportunities in the next bull run.

A look at ETH exchange flows also confirmed that there was healthy accumulation despite the downside. ETH exchange outflows outweighed exchange inflows at the time of writing.

The exchange outflow metric registered 851,225 ETH while the exchange inflow metric registered 664,811 ETH at press time. Higher exchange outflows than inflows can be considered as a bullish sign. This accumulation can also be considered as a bit of a bullish recovery back above $1,200, after briefly dropping as low as 1,136.

Source: TradingView

More upside in the future?

ETH’s downside came shy of the oversold zone, but there was still a chance that it might drop into oversold territory if the selloff continued. That would happen if the current FUD maintains its level but so far the sell pressure seemed to be tapering out.

The observed return of bullish demand was also one of the key signs confirming accumulation. Traders should expect more bullish short-term recovery if the sell pressure dies down giving way to more upside.

Lecturas Relacionadas

The Final Piece of Franklin Templeton's Crypto Ambition

Franklin Templeton Completes Crypto Ambition with Acquisition of 250 Digital On June 22, Franklin Templeton announced the acquisition of 250 Digital and established Franklin Crypto, a new division focused on actively managed cryptocurrency strategies for institutional investors. The unit is led by Christopher Perkins and Seth Ginns. This acquisition marks a key piece in Franklin Templeton's multi-year crypto strategy, which began in 2018 with a digital assets team. The firm's crypto product suite now spans three layers: tokenized funds like the blockchain-based money market fund BENJI (~$831M AUM); a series of passive ETFs including Bitcoin (EZBC, ~$368M), Ethereum (EZET), XRP (XRPZ, ~$252M), Solana (SOEZ), and a multi-crypto index fund (EZPZ); and the newly added active management strategies from Franklin Crypto. The company has also expanded its crypto ecosystem through investments in projects like Ethena and Crossmint, and collaborations with blockchains such as Aptos and Sui. With approximately $18B in digital asset AUM and a total firm AUM of ~$1.78T, Franklin Templeton is positioning itself as a comprehensive crypto asset manager for pensions and sovereign wealth funds. In contrast, competitor Fidelity Investments has taken a different path, focusing early on building its own custody and trading infrastructure. Fidelity's Bitcoin ETF (FBTC) holds over $11B, significantly larger than Franklin Templeton's equivalent offering. Both giants' moves underscore the deepening trend of traditional finance entering the crypto space.

Foresight NewsHace 11 min(s)

The Final Piece of Franklin Templeton's Crypto Ambition

Foresight NewsHace 11 min(s)

Fed Chair Kevin Warsh Faces Congress on July 14 Amid Rate Hike Debate

Federal Reserve Chair Kevin Warsh will testify before the House Financial Services Committee on July 14, providing his first monetary policy assessment to Congress. This hearing occurs weeks before the Federal Open Market Committee's next meeting and fulfills the Fed's biannual reporting requirement. Investors are closely watching for insights on inflation and interest rates. Attention has shifted to the upcoming Personal Consumption Expenditures price index data, with May's figures expected to show a 0.5% monthly increase. Due to persistent inflation, some institutions like Bank of America now forecast three quarter-point rate hikes in September, October, and December, a shift from earlier expectations of no changes this year. Markets currently see a low probability of a July rate hike but are increasingly pricing in tightening later in the year, with CME FedWatch data indicating over a 50% chance of a move by September.

TheNewsCryptoHace 13 min(s)

Fed Chair Kevin Warsh Faces Congress on July 14 Amid Rate Hike Debate

TheNewsCryptoHace 13 min(s)

How Did Its Biggest Rival, Yushu, Split Up Again?

China's humanoid robotics firm Zhiyuan has spun off another company, Mbee Technology, focusing on data collection and processing for embodied AI. Amid a severe "data famine" in the embodied intelligence industry, high-quality real-world interaction data is seen as critical as computing power was for large language models. While teleoperated robots provide high-quality data, the process is expensive. Mbee aims to scale data collection through "embodiment-free" wearable devices and offers a data governance platform and marketplace. However, as a Zhiyuan affiliate, Mbee must prove its neutrality to attract competitors. It faces competition from other data platform players like JD.com. The success of its ambitious goal to reach tens of millions of hours of data capacity by 2026 hinges on gaining industry trust and demonstrating the value of its standardized data supply.

marsbitHace 14 min(s)

How Did Its Biggest Rival, Yushu, Split Up Again?

marsbitHace 14 min(s)

The Next AI Wave Could Be Held Back by Connectivity, Not Compute

The massive investment in AI compute is driving exponential growth in model power, but a critical bottleneck is emerging: connectivity. As AI transitions from centralized training to real-world deployment, applications require massive data mobility, real-time communication, and seamless global networks. Traditional, rigid cloud infrastructure struggles with prohibitive bandwidth costs, latency issues, single points of failure, and data privacy concerns. Decentralized Physical Infrastructure Networks (DePIN) offer a solution by crowdsourcing underutilized resources like compute, storage, and bandwidth, creating a resilient, alternative infrastructure stack. The next wave of AI—including collaborative agents and autonomous systems—demands ultra-low latency and synchronization, making efficient networking a strategic asset. Projects are building blockchain-agnostic, AI-driven routing layers to complement the cloud, enabling scalable, real-time applications. The focus is shifting from where data is stored and processed to how it moves. The future of AI will be defined by the most efficient global data movement, not just raw compute power.

TheNewsCryptoHace 22 min(s)

The Next AI Wave Could Be Held Back by Connectivity, Not Compute

TheNewsCryptoHace 22 min(s)

Black Tuesday in Japanese and Korean Stock Markets: South Korea Triggers Circuit Breaker, Nikkei Plummets, AI Boom Undergoes Phased Adjustment

"Black Tuesday" for Asian Markets: Korean Stocks Halted by Circuit Breaker, Nikkei Plunges as AI Rally Undergoes Correction Asian stock markets experienced severe turbulence on Tuesday, with South Korea's benchmark KOSPI index plummeting nearly 10% after triggering a market-wide trading halt when its losses exceeded 8%. Japan's Nikkei 225 index also fell sharply by approximately 3.5%, ending an eight-day winning streak. The sell-off was heavily concentrated in the technology and semiconductor sectors, with giants like Samsung Electronics and SK Hynix leading the declines. The plunge reflected a rapid reversal from recent highs, with the KOSPI having retreated over 12% from its mid-June peak. Analysts attribute the sharp correction to multiple converging factors. The direct trigger was weakness in U.S. tech stocks, which fueled profit-taking in overbought Asian markets. Furthermore, stronger-than-expected U.S. jobs data has reinforced expectations that the Federal Reserve will maintain or even raise interest rates, putting pressure on rate-sensitive growth stocks. Structural vulnerabilities also played a role, particularly in South Korea, where the market is highly concentrated in a few semiconductor heavyweights, making it susceptible to shifts in global AI demand and foreign capital outflows. Despite the short-term volatility, the long-term narrative for AI and semiconductors remains intact. Industry forecasts still point to massive growth in global AI capital expenditure over the coming years. South Korean firms like SK Hynix maintain a dominant position in critical segments like High Bandwidth Memory (HBM), with long-term orders secured well into 2027. While near-term fluctuations are expected to continue, driven by U.S. monetary policy signals and upcoming corporate earnings, the current correction may present a buying opportunity for quality assets tied to the enduring AI infrastructure build-out.

marsbitHace 27 min(s)

Black Tuesday in Japanese and Korean Stock Markets: South Korea Triggers Circuit Breaker, Nikkei Plummets, AI Boom Undergoes Phased Adjustment

marsbitHace 27 min(s)

Trading

Spot

Futuros