U.Today - Ethereum, the world's second-largest cryptocurrency by market capitalization, $13 billion exit its market in the past few days, raising questions about investor sentiment toward the digital asset.
This comes amid a broader downturn for , which has witnessed four consecutive weeks of declining prices.
Major shift in capital flows
The $13 billion outflow is backed by data from Glassnode's Market Realized Value Net Capital Change Breakdown metric. This metric offers a 30-day net position change for dominant assets on the , including Bitcoin (BTC), Ethereum (ETH) and stablecoins like Tether (USDT), USD Coin (USDC) and Binance USD (BUSD).The Realized Cap, a key component of this metric, values each coin at its last transacted price. This offers a more accurate portrayal of capital flows by considering the liquidity of each coin and filtering out speculative off-chain trading. The sudden could signal bearish sentiment among investors, prompting caution.
Bullish turnaround?
However, there is another side to the story. Cryptocurrency analysts are paying close attention to a particular chart pattern on Ethereum — a hammer candle on its weekly chart.As , Jake Wujastyk, among other market watchers, points out that this formation typically appears at the end of a downtrend.
A hammer candle is characterized by a short body and a long lower wick, suggesting that the asset's price may have found a market bottom and could be poised for an upward reversal.
Despite the four-week slide, the hammer candle has injected a sense of optimism into the investor community, which is now discussing the possibility of a bullish turnaround.