Despite the highly bullish sentiment surrounding Ethereum (ETH) in the cryptocurrency space, a prominent analyst believes that this could be a sign of a correction, and whales and institutions are set to take advantage of the liquidity in the market.

Nicholas Merten of the DataDash YouTube channel spoke to his 512,000 subscribers regarding the movements in the ETH price in the last week, with the cryptocurrency having dropped 11-12%, completely reversing the gains it had made in the month prior.

The analyst believes that this is part of a plan from whales and institutions, to take advantage of the kinds of emotions traders tend to feel when a long-held resistance is broken. He asserts that these big players will take advantage of the eager buyers in the market, to offload the positions they had bought for a much lower price.

Merten continued by pointing out the current macro environment, with the United States Federal Reserve being forced to continue raising interest rates in order to tame inflation. He cautions that in a situation like this, traders can not ignore inflation and its sticking power, as it is more difficult to contain and reverse once it has taken hold.

At the time of this writing, ETH is currently trading at $1,837 and has seen a 13% drop in the past week. This may be the start of trend downwards as large scale investors could be taking an advantage of the rally to cash in on their profits. It remains to be seen what position ETH will take in the markets in the coming weeks.



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