Ethereum [ETH] investors’ reaction to the recent price swings

ambcrypto.com:

Ethereum [ETH] got off to a great start this year, working to regain the positions it had lost over the previous few months. Recent price movements, however, have stopped the increasing trend that started back in January.

Most investors have responded this way despite the recent swings between highs and lows.

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In the previous three days, Ethereum (ETH) has decreased by around 6%, according to a daily timeframe analysis.

Its price was roughly $1,560 as of the time of writing. Its price movement has fallen below the short Moving Average (yellow line) due to its over 4% value decline on 3 March.

The long Moving Average (blue line), which also served as support, was recognized at about $1,513 and $1,448. Also, the resistance was discovered in the $1,600 to $1,700 price range.

Source: TradingView

In addition, the recent decrease has turned Ethereum’s (ETH) trend from bull to bear. In the daily timeframe, the Relative Strength Index (RSI) line has dipped just barely below the neutral region. 

A recent Santiment report showed that the percentage of the overall Ethereum (ETH) supply on exchanges has decreased due to the price decline.

According to the indicator, the exchange supply reached its lowest level in nearly five years. It made up almost 11% of the entire supply as of the time of writing, down from over 11% in December and almost 15% in November.

It showed that fewer people were transferring their holdings to exchanges and instead wanted to keep them in their wallets.

Source: Santiment

Comparing another similar metric with the exchange supply metric revealed a distinct pattern of token movement on and off exchanges.

According to CryptoQuant’s Exchange Netflow statistic,