Ethereum (ETH), the world’s second-largest cryptocurrency, has recently faced a significant price decline following the launch of the spot ETH Exchange Traded Fund (ETF) in the United States. Despite the bearish market trend, two large whale transactions on September 2nd suggest that savvy investors are seizing the opportunity to buy the dip.
Whales Make A Splash -$19.22 Million ETH Purchase
In a striking move, two prominent whale wallets made substantial purchases of Ethereum during the current downturn. According to Lookonchain, whale wallet “0x761d” acquired 3,588 ETH worth approximately $8.8 million, while another address secured 4,180 ETH for $10.42 million in the past 24 hours. This significant accumulation by whales during a market slump often signals a potential buying opportunity and suggests a possible bullish reversal on the horizon.
From a technical standpoint, Ethereum appears to be in a downtrend, trading below the 200 Exponential Moving Average (EMA) on a daily timeframe. The recent breakdown of a bearish rising wedge pattern indicates that ETH could potentially drop to around the $2,200 level in the coming days. However, a critical resistance level to watch is the $2,600 mark. If ETH manages to close a daily candle above this threshold, it could signal a reversal and halt further declines.
The Relative Strength Index (RSI), a key technical indicator, currently shows ETH in oversold territory. This often precedes a price reversal, suggesting that Ethereum might be poised for an upward bounce in the near future.
On-Chain Metrics and Market Sentiment
On-chain metrics bolster the case for a potential Ethereum rebound. CryptoQuant’s data reveals that Ethereum exchange inflows are at their lowest in the past 30 days, typically a buy signal indicating reduced selling pressure. Additionally, CoinGlass’s ETH exchange liquidation map shows that bulls are exerting influence, with significant liquidation levels at $2,420 on the downside and $2,530 on the upside.
Currently, ETH is trading around the $2,510 mark, reflecting a 1.3% price increase over the last 24 hours. The rise in Open Interest—up by 1% in the past hour and 1.5% in the last four hours—further indicates growing investor interest amid recent price drops.
Despite the recent price decline following the launch of the spot ETH ETF, the whale activity and technical indicators suggest that Ethereum may be setting up for a rebound. Investors and traders should closely monitor the key support and resistance levels as Ethereum navigates through this volatile period. The accumulation by whales and positive on-chain metrics offer a glimmer of hope for a potential price reversal, making Ethereum an asset to watch closely in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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