Ether (ETH), the second-largest crypto by valuation seems to be facing a major downtrend as it keeps losing its value. Even in the past seven days, the trading price of ETH has continued to face a major dip.
ETH Experienced an Over 23% Decline
The past 7-day data for ETH suggests its value has plunged more than 23%. At the time of writing, the trading price of ETH is $1,261.
The most concerning part is that the analysts do not expect it to be the end of the downward movement. According to analysts, ETH’s price is expected to face further declines.
This is even after the digital asset has suffered over 23% damage to its value in the past 7-days. The reason behind the constant decline in ETH’s price is the massive withdrawals from all major exchanges.
Post on CryptoQuant
On November 11, an article was posted on CryptoQuant by Onchain Edge which provided insights on the investors’ withdrawals.
While talking about the reasons behind the withdrawals, Onchain Edge claimed that the investors need to brace for more impact. The investors need to be ready as ETH’s price may experience more decline.
According to him, the investors must ready themselves to face yet another price action. The data he posted to support his claim suggested that the possibility of the decline is very high.
However, the data suggests that it must not be considered a bad omen if the price of ETH experiences a decline. Even in the long term, a decline in the trading price of ETH must not be considered a bad omen.
To back up his claims, even more, he reminded the cryptocurrency community of the same trend ETH had witnessed in 2021. He quotes the ETH price plummets from May and November 2021.
As per him, the recent decline in May 2022 also indicated what investors had to expect from the coming November.
Low Inflow of ETH
Glassnode recently shared on-chain data pertaining to Ethereum, revealing that its total inflow volume has continued declining. The increased reduction in the inflow volume for ETH started on November 9.
This happened because of the FTX collapse, raising concerns among investors. Following the exchange’s crash, all the investors could think of was to save their investments from further losses.
The investors feared putting away their funds in exchanges or at holding firms. Instead, the investors have resorted to other options to secure their funds.
As the inflow is decreasing, the moving averages of ETH are following the same path. This could eventually bring down the trading price of ETH.
If ETH does experience a decline, its value may dip to a low of $1,000.