Ethereum Price Analysis: Will Whale Sell-Off Lead to a Major Correction?
Ethereum Price Drop – Ethereum’s price took a 1.67% plunge during Sunday’s trading session, dropping to $2570, with a market cap of $309.5 billion. Despite this bearish movement, analysts view the pullback as a potential opportunity for buyers to regain bullish momentum. However, a recent whale sell-off could signal a deeper correction on the horizon. So, could Ethereum revisit the $2K level, or might it surge towards $3K by the end of September?
Whale Activity Raises Concerns for Further Price Correction
According to Spotonchain, a “diamond-hand whale” with the wallet address “0x682” transferred 15,000 ETH (valued at $38.4 million) to the exchange Kraken earlier today. This whale has a history of triggering major price drops after offloading large amounts of Ethereum. For example, on July 25, the whale sold 10,000 ETH, leading to a 7.6% price decline, and on August 20, the sale of 15,000 ETH coincided with a 2.5% drop.
Currently, this whale holds 26,639 ETH, worth approximately $69.7 million, and boasts an estimated total profit of $132 million, representing an 86% gain. Given the whale’s track record, the Ethereum price could face a deeper correction and potentially retest the $2000 support level.
In addition to the whale’s activity, Santiment reports that the Ether supply on exchanges has grown steadily, reaching 21.43 million ETH. This increase in exchange supply raises the risk of a potential sell-off, which could further intensify downward pressure on the asset.
Ethereum’s Technical Outlook: Double-Bottom Pattern and Price Breakout
Despite recent bearish signals, Ethereum has shown strong bullish recovery over the past two weeks, rebounding from $2150 to $2564, marking a 19.28% growth. This rally has been supported by the U.S. Federal Reserve’s rate cuts and a surge in Bitcoin’s price above $60,000.
On the daily chart, Ethereum’s price has formed a double-bottom reversal pattern, a bullish indicator that suggests a potential 9% price surge. If this pattern holds, Ethereum could challenge the $2800 resistance level, backed by the 100-day moving average. A successful breakout above this key level could accelerate bullish momentum, pushing the price beyond $3000, and potentially even reaching the $3500 resistance barrier.
Will Ethereum Revisit $2K or Push to $3K?
Alternatively, if the overhead supply at $2800 remains strong, Ethereum’s price may struggle to break higher and could revert back to $2000. This could result in a period of consolidation as market participants weigh the potential for a larger breakout or further price correction.
With current whale activity, rising exchange supply, and global economic factors in play, Ethereum faces a pivotal moment. The crypto community will be closely watching whether Ethereum can regain its bullish momentum or whether a deeper correction will bring prices closer to $2K in the coming weeks.
Final Thoughts: Ethereum’s Path Forward
The Ethereum market is in a critical stage, as whale behavior, technical patterns, and broader market conditions converge. Whether Ethereum revisits $2K or pushes towards $3K by the end of September largely depends on how the market reacts to current resistance levels and whale activity. Investors and traders should keep a close eye on key price levels and be prepared for potential volatility ahead.
FAQ: Ethereum Price and Whale Sell-Off
Why did Ethereum’s price drop during the Sunday trading session?
Ethereum’s price dropped by 1.67%, reaching $2,570, due to a recent sell-off by a whale holding a significant amount of ETH, which increased market concerns about a potential deeper correction.
Who is the whale causing Ethereum’s price correction?
The whale, identified as “0x682,” has a history of selling large amounts of Ethereum before major price declines. Recently, the whale deposited 15,000 ETH to Kraken, sparking fears of another price drop.
What is the potential impact of the whale’s sell-off on Ethereum’s price?
If the whale sells a significant portion of their ETH holdings, Ethereum’s price could face further correction, potentially retesting the $2,000 support level.
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