As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market swings and trends. Today’s Ethereum price drop, while concerning, doesn’t seem unusual given the current macroeconomic climate and the cryptocurrency market structure. However, the selling activity by ETH whales is a cause for concern, as these players have proven to be influential in the past.
Today’s Ethereum value stands at $2,286, having dropped approximately 6% in the last 24 hours. It is essential for investors to exercise caution since large Ethereum holders who offloaded their ETH during the 2021 bull market and near the all-time high (ATH) are selling again.
Ethereum Price Today Trades at $2,285, Down 6% in 24 Hours
From September 5th to 6th, the price of Ethereum dropped approximately 13%, currently trading at around $2,285. In just the past day, ETH has decreased by about 6%. This decline aligns with Bitcoin‘s 4% decrease. The negative trend in Ethereum prices may be due to a bearish sentiment in the crypto market and a weak overall economic forecast.
ETH Whales Sell, Will Ether price recover?
According to Santiment’s data, it’s evident that ETH whales are holding between 100,000 and 1 million tokens. In the crypto world, a whale refers to investors who possess over $100,000 in asset value.
This group of investors closely followed Ethereum’s price movements, and it appears from the data that they made profitable decisions by aligning with the overall trend during the 2021 bull run. These large-scale investors tended to buy or sell Ethereum near market highs or lows, as suggested by the image below.
Over a one-month period from February 2024 to March 2024, these investors amassed approximately 2 million Ether, demonstrating their bullish inclination and firm belief. Just prior to Ethereum reaching its all-time high of $4,099, these ‘whales’ initiated the sale of their assets, triggering a 23% drop in the subsequent week.
In 2021, Bitcoin reached an all-time high of approximately $69,000, which caused a market reversal that dragged Ethereum and other leading altcoins lower. However, things have changed now. Since then, Bitcoin has been experiencing a downtrend, but there’s an opportunity for bullish investors to make a resurgence.
In other words, if the value of Bitcoin doesn’t further increase the downward trend, it’s improbable that these large investors (whales) will push the price of Ethereum lower.
Ethereum Price Analysis: ETH Plans Recovery Rally
Bitcoin’s price appears to be forming a promising base for an uptrend, potentially triggering a recovery rally for Ethereum as well. The low points on August 5 and September 6 show a noticeable bullish divergence when considering Relative Strength Index (RSI) and Average Oscillator (AO) indicators. This technical configuration suggests an increasing bullish trend that hasn’t fully manifested in the current price. Such patterns usually lead to a surge in price towards higher levels.
If Ethereum’s price exhibits a bullish divergence, it might trigger a recovery rally that could potentially push ETH up to $2,618 – a significant resistance point. This upward trend represents a potential 15% increase in value, but at this level, Ethereum may encounter strong obstacles.
If the predicted Ethereum price increase based on bullish divergence doesn’t occur, it might suggest weak buyer demand or downward pressure from Bitcoin’s sluggishness. In this scenario, the Ethereum price could dramatically drop and potentially retest the $2,000 psychological mark.
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2024-09-07 15:34