Ethereum Price Analysis As Massive ETH Transfers Hint At Another Crash

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As a seasoned researcher with over two decades of experience in the cryptocurrency market, I have witnessed countless price fluctuations and trends that often leave even the most experienced traders scratching their heads. The recent developments in Ethereum’s price movement are no exception, and they raise a few eyebrows due to the significant transfers by whales.

As the new week started, Ethereum‘s price showed a blend of technical and underlying indicators, mirroring the high volatility that impacted Bitcoin and many other altcoins over the weekend. A surge in transactions going to exchanges might further strengthen the downward trend, before Ethereum has the power to break through higher resistance thresholds.

Ethereum Whales Prepare To Sell

On Sunday, the price of Ethereum shifted direction from its $2,500 support level, indicating a possible significant surge beyond $3,000. Yet, there’s growing apprehension due to an uptick in large transactions (whale transfers) being sent to cryptocurrency exchanges, suggesting potential uncertainty about the asset’s upcoming performance.

According to blockchain data from Lookonchain about cryptocurrency X, a whale who bought Ether during the project’s initial coin offering (ICO) back in 2014 recently transferred 5,000 ETH, equivalent to approximately $13.2 million at today’s exchange rate of around $2,675, to the OKX exchange on Monday.

Over the past 35 days, I’ve observed a significant movement of assets: approximately 48,500 Ether, equivalent to around $154 million, being consistently transferred to OKX exchange by an entity. The average price point for these transactions was roughly $3,176 per ETH.

As a seasoned cryptocurrency investor with over a decade of experience in this ever-evolving digital landscape, I can’t help but marvel at the story of this whale who invested a significant amount in Ethereum’s initial coin offering (ICO) back when Ether was trading at just $0.31. Twelve hours ago, they decided to deposit an impressive 5,000 ETH, worth approximately $13.2 million at current prices, into OKX – a testament to their faith in Ethereum’s potential and the power of long-term investment strategies. This move serves as a reminder for us all to stay patient, diligent, and adaptable in this dynamic world of blockchain and digital assets.
Over the past month, this whale transferred approximately 48,500 Ethereum (worth about $154 million) into OKX, with an average purchase price of around $3,176 per ETH.
— Lookonchain (@lookonchain) August 12, 2024

Yesterday, it was reported by Lookonchain that block builder Beaverbuild transferred another 5,550 ETH, equivalent to approximately $14.95 million, to Binance. Over the past year, Beaverbuild has deposited a total of 14,657 ETH, or around $39.83 million, into both Binance and OKX.

5,550 ETH (approximately $14.95ZM) was recently deposited onto Binance by Beaverbuild, who is known for constructing blocks. In the last year, this block builder has transferred a total of 14,657 ETH (roughly $39.83M) to both Binance and OKX.
— Lookonchain (@lookonchain) August 12, 2024

Rarely do early adopters transfer Ethereum to exchanges, but when they do, it might suggest that token holders are preparing to sell, stake, or expand their investment portfolios by acquiring additional tokens.

Ethereum Price Analysis: ETH Losing Upward Momentum

The cost of Ethereum stayed around $2,656 because it couldn’t break through the resistance at $2,700, which also corresponded to a significant Fibonacci level. This situation suggests that a bearish signal called a “death cross” might appear soon, as the 50-day moving average is expected to cross below the 200-day moving average.

Based on past predictions about Ethereum’s price, there could be a trend towards decreasing prices after the formation of a “death cross.” This situation might prompt traders to consider selling or adjusting their stop-loss orders cautiously. However, it’s essential to verify this signal with other indicators before making any decisions.

As a researcher analyzing market trends, I’ve noticed that the Moving Average Convergence Divergence (MACD) for Ethereum (ETH) has found itself in the negative zone, signaling a potential sell opportunity. This could prompt traders to explore the possibility of taking short positions on ETH.

If the ETH price drops below the $2,500 short-term support, it could amplify the effects of the “death cross,” potentially leading to a downward trend towards $2,000. Recently, the ETH price touched the $2,100 support level, implying that a continued decline beneath $2,000 is a possibility we can’t ignore.

Ethereum Price Analysis As Massive ETH Transfers Hint At Another Crash

According to the IOMAP model, Ethereum’s price doesn’t have strong resistance above $2,500, but it does suggest a potential path for recovery towards $3,000. If Ethereum manages to overcome the current barrier at $2,700, this could trigger quick price growth, potentially marking the beginning of a new bullish trend that might push ETH up to $4,000.

Ethereum Price Analysis As Massive ETH Transfers Hint At Another Crash

According to the IOMAP model by IntoTheBlock, approximately 2.12 million Ethereum addresses collectively bought about 50.18 million ETH within the price range of $2,273 to $2,354. As these investors currently stand in a profitable position and are less likely to offload their holdings, this could potentially lead to an uptick in Ethereum’s value over the next few weeks.

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2024-08-12 22:11