The recent fluctuations in the cryptocurrency market have seen Ethereum (ETH) experience a significant price drop, an event that may have been amplified by the strategic movements of the so-called “whale”.
These large investors, through massive transactions, can influence market dynamics and contribute to more pronounced price variations.
Summary
Movements of the whale and impact on the market for Ethereum
Shortly before the recent crash, some Ethereum whales made strategic exits from their positions, intensifying the selling pressure. A relevant example involves a dormant whale that, after six years of inactivity, transferred 77,736 ETH, worth 228.6 million dollars, to Bitfinex.
This amount had previously been withdrawn for only 11.9 million dollars in January 2019, when Ethereum had a price of 153 dollars per token.
These deposits in centralized exchanges suggest a possible intention of massive selling, contributing to increasing the bear pressure on the market.
In parallel, another whale has taken a short position on Ethereum with a 50x leverage, generating an unrealized profit of over 30 million dollars. This aggressive strategy has likely intensified the bear trend, triggering further forced liquidations and amplifying the crash.
Ethereum and the lower logarithmic regression trendline
The recent price drop has brought Ethereum into the lower range of its logarithmic regression line. This channel has historically represented an important zone of support and resistance, with ETH tending to bounce from the lower levels before a rise towards the median line.
In June 2024, Ethereum approached the lower limit of this channel, suggesting a possible continuation of the bear phase.
Currently, with a price around 2,526 dollars, the historical support level at 1,750 dollars could become a key target in case of further selling pressure.
If Ethereum manages to maintain stability above this lower limit, we could witness a recovery towards 3,500 dollars, the intermediate zone of the logarithmic channel.
However, a potential break to the downside could lead ETH to test deeper levels, with 1,200 dollars as a possible target in the event of an extended correction.
What to Expect from the Ethereum Market?
The recent actions of the whale highlight the necessity to closely monitor their movements, as they often anticipate market trends.
Investors should pay attention to any new massive transfers to the exchanges, which could signal future sales and high volatility.
With Ethereum oscillating in a critical zone, the market’s ability to absorb these sales and maintain current support levels will determine the future direction of the asset. Experienced investors continue to observe on-chain data to identify signals of accumulation or further bear pressure.
In summary, while the behavior of the whale has contributed to the recent collapse, the market’s reaction in the coming days will be crucial to understand if ETH is in a consolidation phase or if the bear trend will continue towards new lows.
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