Ethereum is currently testing the $2,400 level after a recent peak of $2,546, as traders reassess their risk exposure following unexpectedly strong U.S. job data. The recent correction has raised concerns among investors, particularly as rising rate-hike expectations weigh heavily on risk assets.
According to the latest figures, U.S. Nonfarm Payrolls increased by 162,000 in August, significantly surpassing the anticipated 56,000. This robust performance also marked a sharp rise from July’s 21,000 additions. The unemployment rate remained steady at 4.1%, while the labor force participation rate saw a slight uptick to 61.6%.
This strong jobs report has escalated the likelihood of a Federal Reserve interest rate hike to approximately 60%, up from 49% the previous day. This shift has historically pressured risk assets, including cryptocurrencies like Ethereum.
At the time of writing, ETH was trading at $2,438. Despite this dip, the price holds above the 50-day, 100-day, and 200-day Exponential Moving Averages, which are clustered between $2,069 and $2,175. The Relative Strength Index (RSI) stands at 61, indicating a healthy market condition, while the Moving Average Convergence Divergence (MACD) has turned negative, suggesting a slowdown in bullish momentum.
Whale Activity Increases Selling Pressure
Compounding the current market pressures, a significant Ethereum whale liquidated its entire position of 167,855 ETH, valued at approximately $408 million, over the course of five days. Reports indicate that these funds were transferred to exchanges such as OKX, Binance, and Bybit, according to data from Lookonchain.
By the time of reporting, roughly 70,739 ETH had already been deposited onto exchanges, while the remaining 97,115 ETH continued to reside in the wallet. This large-scale sell-off is contributing to the downward pressure on ETH prices.
In a separate incident, a hacker associated with Coldcard began converting stolen Bitcoin into Ether via THORChain, having moved about 10% of the stolen funds, with the majority still unliquidated.
Positive Trends in ETF Flows and MVRV Ratio
On a brighter note, Ethereum spot ETFs attracted a remarkable $148 million in inflows just last Thursday, bringing cumulative inflows for August to a staggering $1.85 billion. Total net assets under management for these ETFs have reached approximately $16 billion, reflecting a growing institutional interest in Ethereum.
For context, monthly ETF inflows were recorded at $365 million in July, indicating a significant surge in August, with $104 million already recorded for September.
Additionally, Ethereum’s Market Value to Realized Value (MVRV) ratio crossed back above 1.00 on August 21 for the first time in 200 days. This development suggests that the average ETH holder is once again in a position of unrealized profit, with the realized price approximating $2,300.
Technical analyst Aksel Kibar (@TechCharts) has noted that ETH/USD may be forming a bull flag right at resistance, advising traders to watch for breakout confirmations. His analysis indicates that this period of consolidation could lead to a significant price movement if confirmed.
As of now, ETH ETF inflows for September are at $104.26 million, with bulls actively working to establish the $2,500 level as a firm support base. The market remains poised as traders and analysts closely monitor these developments, anticipating the next significant move for Ethereum.
