Ethereum whale transactions above $100k have reached levels last seen in January 2018
Ethereum has lost above 50% of its gains since setting an all-time high mid this month
The increment of whale transactions coupled with the rapid sell-off is indicative of a potential top for Ethereum
Ethereum’s correlation to Bitcoin has started to increase once again
The number of Ethereum whale transactions above $100k has seen a rapid increment in the last few days and peaked to levels last seen in January 2018 right after ETH set an all-time high for that season of $1,440. This is according to an observation made by the team at Santiment who shared their analysis through the following statement and accompanying chart.
The amount of Ethereum whale transactions (greater than $100,000 in value) ballooned to levels not seen since January, 2018 this week. After hitting an All Time High of $4,358 just 9 days ago, ETH dropped to $2,015 (a -53.8% slide) in just one week.
To note is that Ethereum went through a similar fate in January 2018 after setting the aforementioned all-time high of that bull season of $1,440. What happened back then, is that Ethereum printed a double top pattern before dipping by 47.5% to $755. The chart below further highlights the price action back in January 2018.
Ethereum’s Correlation to Bitcoin Increases
The probability of Ethereum having topped out at $4,372 has also increased based on the fact that ETH’s correlation to Bitcoin is once again rising as seen in the following chart courtesy of Coinmetrics.
An increased correlation between Ethereum and Bitcoin means that where BTC goes, ETH will follow. This relationship between the two digital assets has been best exemplified through the volatility of the last week when Bitcoin dropped from $41k to $30k on Wednesday and from $41k to $33,488 earlier today. During the same time period, Ethereum dropped from $3,400 to $1,888 on Wednesday and from $2,990 t0 2,100 earlier today.
Therefore, if Bitcoin has entered a bear market, Ethereum will also enter a bear market and $4,372 will definitely be a top.