Ethereum (ETH) is experiencing selling pressure from its large holders, commonly referred to as whales. Ali, a famous crypto analyst, has highlighted the significant influence of whale addresses with a minimum holding of 10,000 ETH on the altcoin’s price movement.
🧵 1/2 #Ethereum | Notice the strong correlation between the number of whales holding 10,000+ $ETH and its price trajectory.— Ali (@ali_charts) August 26, 2023
If seasoned investors are offloading, it prompts the question: Is now the right time to buy or to short #ETH? pic.twitter.com/SVF6e6z5fw
Ali shared a chart illustrating the correlation between these addresses and Ethereum’s price as well as asking his followers whether they think it is a good time to buy or sell ETH considering the ongoing decline in whale holdings over the past few weeks.
In a subsequent tweet, Ali disclosed their decision to adopt the same strategy as the whales by shorting ETH—indicating their anticipation of a price decline. However, they emphasized that closely monitoring whale activity is essential before initiating any long positions—an optimistic stance expecting price appreciation.
As of now, ETH is trading at $1,651.01 according to CoinMarketCap data. Over the past 24 hours and week, it has experienced marginal declines amounting to 0.02% and 0.87%, respectively. The current market capitalization for ETH stands at $198 billion.
Ethereum Price Analysis: ETH Eyes $1,775 If Bullish Flag Breaks Out
From a technical standpoint, Ethereum has formed a bullish flag pattern on its daily chart. Over the past 24 hours, the relative strength index (RSI) has crossed above its signal line, suggesting a potential uptrend in the near future.
As soon as this bullish flag is confirmed, we may be able to see Ethereum attempt to break above the resistance level of $1,690 and establish it as resistance. Should buying pressure persist, the next target for ETH would be $1,775.
In such a scenario, there is a risk of downside volatility towards the next key support level at $1,580 if ETH fails to pass around $1,690 and remains below it in the coming week. In such a scenario, there is also a risk of downside volatility to the next key support level at $1,690.
This bearish scenario seems more probable due to current short-term momentum favoring sellers. The bearish outlook would be invalidated if Ethereum manages to close a daily candle above $1,690 within the next 72 hours.
Join our Telegram Channel https://t.me/elevenews