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Ethereum Likely to Dump When the Following Happens, CryptoQuant Chief Warns

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Wed, 08/11/2021 - 11:45
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Yuri Molchan
CEO of CryptoQuant believes that Ethereum is likely to go down significantly as more and more investors are entering the market
Ethereum Likely to Dump When the Following Happens, CryptoQuant Chief Warns
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Freshly shared analytics data shows that, despite the rise in Ethereum OI near 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 a recent tweet by CEO and co-founder of on-chain data aggregator of CryptoQuant Ki Young Ju, there is increasing activity by 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 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, the CryptoQuant CEO warns.

Earlier, he also warned investors about the Bitcoin Exchange Whale Ratio hitting 90 percent. Ki Young Ju explained that a rise in this metric shows an increase in selling pressure from crypto whales.

Ethereum swaps OI surges close to all-time high

Data provided by popular analytics firm Glassnode shows that, despite a massive rise of open interest in Ethereum perpetual swaps, there are still many short trades open.

Previously, U.Today reported that 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.

Related
Cryptocurrency Trading Volumes Exceed $12 Trillion Public Trading Equities Market

Ethereum keeps trading above $3,000

At press time, Ethereum is changing hands at $3,228 for the first time since late May, according to 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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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.