Ethereum (ETH) is exhibiting mixed signals as large holders move substantial amounts of the cryptocurrency to exchanges, sparking concerns of a potential price correction. Yet some analysts are taking the long-term view and staying bullish on ETH despite recent negative trends. They cite supportive technical indicators and recent positive capital flows into ETH-focused investment funds as signs of strength.
Whale Movements and Market Impact
The third largest Ethereum whale address recently accumulated 33,631 ETH, worth about $83 million. Recent attention has been placed in criticism after large ETH transfers to exchanges. In June, Ethereum wallets 0x14e4 and 0x26Bb completely unstaked ETH and withdrew 95,920 ETH worth about $237 million at the time. In 20 days, 62,289 ETH deposited on HTX, Bybit and OKX combined pic.twitter.com/sm3B6yCtAB— Coinpresso @ 1COIN— We’re going up! That’s an influx of funds equal to about $154 million!
Ethereum’s net flows into and out of Binance and other crypto exchanges have exploded. That’s five straight days of rising market activity in a row. These movements have contributed to concerns that Ethereum could face a 25% price drop, potentially falling toward $1,600, especially after failing to overcome a multi-year technical resistance.
Technical Analysis and Price Predictions
ETH has recently fallen below the lower trendline of a two-week chart symmetrical triangle. Such an inflection point has been developing since the middle of last year, 2022. The 50-period exponential moving average (EMA) is currently sitting directly on the triangle’s lower trendline. This has created a very strong resistance confluence which ETH bulls are having difficulty breaking through.
Ethereum was able to find a bounce around the 200-period exponential moving average at that time, located just above the $1,600 mark. Despite this, the recovery was rejected after the price tried to push above the 50-period EMA at approximately $2,545. Other analysts are not giving up hope, even with the bearish indicators. They point to Ethereum’s ability to stage a weekly close above its weekly RSI resistance. They expect this breakout to come “any day now.”
Analyst Perspectives
Analyst Agela believes that for Ethereum’s price appreciation to materialize, ETH must breakout.
"Since Q1 2024, ETH weekly RSI has made lower lows, and this is why ETH hasn't been able to reclaim $4,000." - Agela
Agela's analysis highlights the importance of overcoming RSI resistance to propel Ethereum's price higher. Despite those technical challenges, capital has kept pouring into ETH-focused investment funds. Such vigorous support provokes a big future resistance in the making.
