In the current bearish market environment, significant players in the cryptocurrency world, commonly referred to as “whales,” have started to show renewed interest in Ethereum (ETH). Ethereum, being the second-largest cryptocurrency by market capitalization, has caught the attention of these major investors.
On September 18, 2024, the on-chain analytics firm Lookonchain reported an intriguing development on X (formerly known as Twitter). A whale who had previously sold 5,690 ETH, valued at $13.1 million, made a substantial buyback of 5,660 ETH, also worth $13.1 million, at an average price of $2,316. This activity has raised eyebrows and sparked discussions within the crypto community.
ETH Buyback Before Fed Decision
The whale’s actions resulted in a loss of 30.8 ETH, equivalent to about $71,400, within a single day. Interestingly, this significant Ethereum buyback occurred just before the Federal Reserve’s rate cut announcement. The timing suggests that the whale might be anticipating the implications of the Fed’s decision, which could potentially influence Ethereum’s price and market dynamics. This strategic purchase was made during the opening bell of the US stock market, further indicating the whale’s calculated approach.
Bearish On-chain Metrics
Despite the substantial ETH buyback, the on-chain metrics continue to emit bearish signals. According to Coinglass, an on-chain analytics firm, ETH’s Long/Short ratio currently stands at 0.966, reflecting bearish sentiment among traders. Moreover, the future open interest for Ethereum has declined by 2.5% over the past 24 hours, indicating reduced trader interest likely due to the overall bearish market outlook.
When evaluating all the available data, it becomes evident that the prevailing sentiment is quite bearish, with traders showing reluctance to establish either long or short positions. Presently, 50.85% of top ETH traders hold short positions, while 49.15% hold long positions. This imbalance indicates that bearish traders currently have the upper hand in the market.
Ethereum Technical Analysis and Upcoming Levels
Expert technical analysis suggests that Ethereum appears to be in a bearish phase and is currently hovering around a crucial support level of $2,230. Additionally, Ethereum is facing resistance from a descending trendline, which could pose challenges for a price recovery. Based on historical price movements, if Ethereum manages to close its daily candle above the $2,470 level, there is a potential for the price to rise to the $2,800 level.
Meanwhile, Ethereum’s Relative Strength Index (RSI) is in oversold territory, hinting at a possible price reversal in the near future. At the time of writing, Ethereum is trading near the $2,300 level, having experienced a price decline of over 2.5% in the past 24 hours. During the same period, Ethereum’s trading volume has surged by 10%, indicating increased trader participation amid the market downturn.
In conclusion, the recent actions of crypto whales and the prevailing market conditions suggest a complex and evolving landscape for Ethereum. As traders and investors continue to navigate these turbulent times, close attention to on-chain metrics and technical analysis will be crucial in making informed decisions.
