As the world’s second-largest cryptocurrency Ethereum (ETH) struggles under the $1,650 level, on-chain data shows that whales are making the most of this dip opportunity.
Popular crypto analyst Ali Martinez explained that Ethereum Whales added 260,000 ETH with a staggering $425 million within 24 hours.
#Ethereum whales appear to have purchased around 260,000 $ETH within the last 24 hours, worth nearly $425 million. pic.twitter.com/rPRMhnI6oD
— Ali (@ali_charts) September 5, 2023
The development comes as there’s been a strong ETH whale movement reported a day before. Two whale addresses moved a total of 300,000 ETH on Coinbase earlier on Monday.
Ethereum recently experienced two significant whale transfers, each involving 150,000 ETH, to Coinbase. These transactions, among the largest in 2023, mark the most substantial on-chain activity since June 13. While the motivations behind these transfers remain undisclosed, it’s worth noting that they may not necessarily have an immediate impact on the price of Ethereum.
Will ETH Price Action Follow?
Ethereum has been recently under strong selling pressure and $1,600 holds important support on the downside. On the upside, Ethereum has faced several rejections at $1,730 levels.
As of press time, ETH is trading at $1,629 with a market cap of $195 billion. It remains to be seen whether ETH whales can turn this bearish sentiment into a bullish one, or if there’s more pain on the downside.
On the technical chart, ETH shows strength as reported by CoinGape, and is on its way to $2,000. The path of least resistance appears to have shifted towards the upside, supported by a buy signal from the Moving Average Convergence Divergence (MACD) indicator. This bullish signal is evident as the blue MACD line crosses above the red signal line, and the momentum indicator indicates a likely uptrend toward the mean line and into positive territory. Consequently, traders are gaining confidence in taking long positions in Ethereum.
To sustain this uptrend, it’s crucial for Ethereum to maintain short-term support at $1,630. However, traders should remain mindful of potential obstacles along the way, including the 50-day Exponential Moving Average (EMA) at $1,645, the 100-day EMA at $1,668, and the 200-day EMA at $1,715. These levels may act as resistance points in the upward trajectory.