As Bitcoin struggles to maintain its price level above $27,500, Ethereum is also attempting to rally past the critical $1,650 threshold. Amidst the increased volatile day, whales are not sitting idle; even those who have been dormant are now making significant plays. With a noticeable uptick in large-scale transactions, traders are left wondering whether more volatility is on edge and what Ethereum’s next move will be.
Whales Offloading Holdings Heavily
While many retail investors are cautiously bullish on ETH’s trade near $1,650, it’s the whales who have really stolen the spotlight. Their sudden buying and selling activities have induced increased volatility in the price chart, forcing ETH price to make wild swings near crucial levels.
Based on recent figures from Coinglass, Ethereum’s open interest (OI) has experienced a $100 million increase in just a matter of hours. As the price of ETH approaches the crucial $1,650 mark, traders are progressively taking positions in anticipation of a significant price shift.
Nonetheless, Ethereum faces the risk of potential sell-offs as whale activity raises alarms.
On-chain metrics show a significant increase in large transactions, skyrocketing from a low of 1,210 to 2,590 in just 48 hours. Moreover, the total value of transactions conducted by whales has nearly doubled, soaring from $971 million to $1.9 billion, bringing uncertainty over Ethereum’s price trajectory.
One Ethereum whale, dormant for two years, reactivated four days ago. This whale moved 10,000 ETH ($16.5M) out of their wallet and then into Binance, OKX, and KuCoin. Today, the same whale transferred another 10,000 ETH out.
Separately, another Ethereum whale who participated in the 2014 ICO and holds about 254,908 ETH (worth approximately $422.6M) deposited 6,000 ETH (roughly $10M) into the Kraken exchange.
Both whales’ activities could significantly increase selling pressure, potentially driving Ethereum’s price downward as supply outstrips demand.
What’s Next For ETH Price?
The current price of Ethereum is encountering resistance at the key 20-day EMA level, as it experienced a selloff when it approached the $1,660 high. Despite this, bullish sentiment remains strong, preventing any immediate decline and suggesting the potential for a rebound. As of writing, ETH price trades at $1,645, declining over 0.6%.
The 20-day EMA appears to be stabilizing, and the Relative Strength Index (RSI) is hovering just above the midpoint, suggesting a bullish reversal. If the buyers can maintain the price above the 20-day EMA, Ethereum could retest the crucial resistance at $1,670. If successful, bulls might drive the price to the North to break the level of $1,750. However, bears will defend this level aggressively.
On the flip side, the bears may have different intentions. They could attempt to pull the price back under the 20-day EMA, aiming to catch bullish traders off guard. A dip below $1,604 might trigger a decline towards a potentially strong support level at $1,530.