June 24, 2021

Ethereum Primed To Rebound Thanks to Whale Buyers

3 min read

Ethereum has actually incurred substantial losses in the past 24 hours. Nevertheless, “& ldquo; whale & rdquo; investors are purchasing these tokens at a discount promoting hopes of a timely price healing.

Ethereum Loses Critical Support Barrier

Following a 90% bull rally given that the beginning of the year, the Tom Demark (TD) Sequential indicator has alerted financiers that Ethereum was bound for a high price correction.

This technical index provided sell signals on both the 1-day and 12-hour charts, forecasting that the largest altcoin by market capitalization was approaching overbought territory.

What came next was a 32.50% correction that saw ETH drop from a high of $1,355 to a low of $915 in the previous 24 hours.

Ethereum US dollar price chart

ETH/USD on TradingView IntoTheBlock’s IOMAP model reveals that Ethereum lost a crucial area of support represented by the $1,140 level. More than 152,000 addresses bought over 6.7 million ETH around this cost point. Now that the $1,140 obstacle has actually become resistance, it might not be simple to push costs back up. Holders within this rate

range may attempt to recover cost each time Ether goes up to prevent additional losses. The spike in sell orders could contain increasing costs until there are no more tokens to offer. But if the selling pressure is substantial enough, Ethereum may aim for $800 or perhaps $700 since there is no substantial need barrier underneath it, based upon IOMAP mates.

In/Out of the Money Around Price by IntoTheBlock
In/Out of the Money Around Price by IntoTheBlock Despite the lack of significant assistance walls beneath Ethereum, whales seem to have purchased the dip. Santiment’s holders circulation chart shows that roughly 17 new addresses holding 10,000 to 100,000 ETH joined the network in the last 24 hours. The increasing demand originating from high net worth individuals throughout such a high correction shows conviction about the potential that this cryptocurrency might need to advance further.

Ethereum Holders Distribution by Santiment
Ethereum Holders Distribution by Santiment Still, Ethereum would need to regain the $1,140 level as assistance to put in jeopardy the bearish thesis. If this were to take place, the second-largest cryptocurrency by market capitalization could rise and re-test its previous all-time high of almost $1,400.

Cryptocurrency Market Moves Forward

Ethereum is not the only coin affected by this pattern. Bitcoin has also experienced among the biggest one-day corrections given that March 2020’s Black Thursday. The flagship cryptocurrency saw its price plummet by more than 26%. It went from trading at a high of $41,230 to hit a low of $30,450 within a few hours.

Some in the crypto community explain the current market crash as manipulation. Equity capital investor Tim Draper thinks that banks are trying to control Bitcoin because it may interrupt their monetary design. He preserves that this was an attempt to frighten investors which BTC is headed to $250,000 by the end of 2022.

Also, Rafael Schultze-Kraft, CTO at Glassnode, said that those who are selling their tokens during such high periods of volatility are in mistake. He states that investors are offering their holdings to the “& ldquo; big people & rdquo; at a discount rate to then purchase a higher cost. Schultze-Kraft suggests that crypto lovers should add more tokens to their holdings during high corrections prior to each bullish cycle.

In spite of the bullish sentiment from prominent market individuals, it is necessary to keep an eye out for various essential cost levels previously mentioned as Bitcoin and Ethereum sit on top of weak assistance.

Disclosure: At time of composing, this author owned Bitcoin and Ethereum.