Ethereum Faces 25% Price Drop as $237M Whale Moves ETH to Exchanges
Ethereum Faces Potential 25% Decline as Whale Activity Increases
Ethereum’s Technical Struggles Signal Possible Price Drop
Ethereum’s native cryptocurrency, Ether (ETH), is exhibiting signs of weakness after failing to surpass a significant multi-year resistance level. Analysts suggest that a drop of approximately 25% toward the $1,600 mark could be on the horizon.
Technical Analysis Indicates Bearish Trends
Recent analysis of the two-week price chart reveals that Ether has fallen below the lower trendline of a symmetrical triangle pattern that has been intact since mid-2022. In March, the 200-period exponential moving average (EMA) around $1,600 provided a temporary support, but the price recovery faltered after encountering resistance at the 50-period EMA near $2,545. This resistance confluence has proven difficult for ETH bulls to breach, as evidenced by multiple failed attempts in recent months.
Additional bearish indicators include the relative strength index (RSI) for Ethereum, which remains below a long-term descending trendline. Despite some recent price recoveries, the RSI has not managed to break through this resistance, suggesting a decline in bullish momentum and reinforcing the likelihood of further downward movement.
Whale Activity Raises Concerns Over ETH Price Stability
On-chain data reveals that significant whale activity is contributing to the bearish sentiment surrounding Ethereum. In early June, two wallets, identified as 0x14e4 and 0x26Bb, unstaked and withdrew a total of 95,920 ETH, valued at approximately $237 million. Of this amount, 62,289 ETH has already been transferred to various exchanges, while the remaining 33,631 ETH is still held in the whale’s wallet, potentially indicating further selling pressure.
Increased ETH Inflows to Binance Signal Market Weakness
The recent large transfers of ETH to exchanges coincide with a report indicating that Ethereum has experienced inflows into Binance, the largest cryptocurrency exchange by trading volume, for five consecutive days. This trend aligns with data from Glassnode, which shows a notable decline in ETH held by wallets containing 10,000 to 100,000 ETH since mid-May, while smaller wallets holding 1,000 to 10,000 ETH have seen an increase. This shift suggests that larger holders may be redistributing their assets or offloading them, further contributing to the bearish outlook.
Contrasting Market Sentiment: Analysts Predict Future Rally
Despite the current bearish sentiment surrounding Ethereum, some analysts maintain a more optimistic view. They believe that a breakout above the weekly RSI resistance is imminent, which could serve as a catalyst for price appreciation. One analyst noted that since the first quarter of 2024, the weekly RSI has been making lower lows, which has hindered ETH’s ability to reclaim the $4,000 mark.
Other market experts predict that Ethereum could eventually rally toward $10,000, driven by favorable technical indicators and consistent capital inflows into ETH-focused investment vehicles.
This article is intended for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research before making any financial decisions.
