Ethereum (ETH), the second-largest cryptocurrency by market cap, saw its price decline by more than 3% in the last 24 hours. This could be attributed to a large sell-off by a notable whale. The whale transferred 25,000 ETH (worth about $47.24 million) to Binance and then withdrew a large amount of USDT shortly after.
ETH: Whales Vs. Bulls
Lookonchain, an on-chain data provider, suggests that the whale has likely sold some of his ETH. The on-chain data shows that the whale took out 16 million in USDT. “The whale’s sell-off probably caused the ETH price drop [a few hours] ago,” the analysts say, adding that the whale still has around 8,000 ETH ($14.7 million) unsold.
The drop in $ETH price 11 hrs ago was most likely due to the sell-off of this whale.
— Lookonchain (@lookonchain) June 29, 2023
However, ETH bulls are not giving up. The 1-hour chart of Ethereum shows that the price has created a bull flag. A flag is a short-term consolidation pattern that happens after a strong price movement and signals a pause in the trend.
A bullish flag is a pattern that occurs when the price is rising, creating a vertical line called the flagpole, and then pauses and moves sideways in a narrow range, forming the flag. This indicates that the buyers are taking a break before resuming the upward trend.
ETH has respected this pattern so far, rebounding at $1,825. This suggests that the bullish momentum is still strong (despite the whale) for now.
Depending on what happens next, there are two possible outcomes. Ethereum might see its price drop to $1,750 if it fails to stay above the key support levels, especially the lower edge of the flag. On the other hand, if it breaks out of the flag pattern to the higher side (around $1,900), it could spark a price increase towards $2,000.
Analyst Ali Martinez points out that Ethereum faces a crucial supply wall between $2,000 and $2,060, where more than 26 million ETH are held by 832,640 addresses. He says that this is the major resistance level for the price to overcome. “A successful breach of this hurdle could trigger a rally to $2,330 or even $2,750,” Martinez predicts.
— Ali (@ali_charts) June 26, 2023