Ethereum price showed mixed technical and fundamental signals at the start of the week, reflecting the strong volatility that affected Bitcoin and most altcoins over the weekend. A surge in transfers to exchanges could reinforce the downtrend before Ether regains momentum and tackles higher resistance levels.
Ethereum whales prepare to sell
Ethereum price retreated from the $2,500 support level on Sunday and aimed for a major breakout above $3,000, but increasing whale transfers to exchanges have raised concerns about the asset’s future performance.
Blockchain data shared by on-chain analytics firm Lookonchain on X showed that a whale who participated in the protocol’s initial coin offering (ICO) in 2014 transferred 5,000 ETH, worth $13.2 million at the current exchange rate of $2,675, to the OKX exchange on Monday.
So far, this whale has transferred 48,500 ETH worth $154 million to the same OKX exchange at an average price of $3,176 over the past 35 days.
A whale that received 1M $ETH In #Ethereum ICO at a price of $0.31 deposited 5,000 $ETH(13.2 million USD) to #OKX again 12 hours ago.
This whale has 48,500 $ETH(154 million USD) to #OKX at an average price of $3,176 last month.https://t.co/4AN8voWrFEhttps://t.co/u1zjZ01Ez4 pic.twitter.com/ZDsFCcFiTk
— Lookonchain (@lookonchain) 12 August 2024
Lookonchain reported another transfer from Beaverbuild, a block builder, that transferred 5,550 ETH worth $14.95 million to Binance late Monday. Over the past year, Beaverbuild has transferred 14,657 ETH worth $39.83 million to both Binance and OKX.
beaverbuild has deposited 5,550 $ETH($14.95ZM) 2 hours ago to Binance.#beaverburrow is a block builder and has 14,657 $ETH(39.83 million USD) to #Binance And #OKX last year.https://t.co/bS4TM168fX pic.twitter.com/WU904NHrPd
— Lookonchain (@lookonchain) 12 August 2024
It is not common for early adopters to transfer Ethereum to exchanges. Nevertheless, such transfers could mean that token holders are ready to sell, stake, or potentially diversify their portfolios to include other tokens.
Ethereum Price Analysis: ETH Loses Bullish Momentum
Ethereum price was floating at $2,656 after bouncing off the resistance at $2,700, which coincided with the 78.6% Fibonacci level. The 50-day exponential moving average (EMA) crossover with the 200-day EMA means a death cross comes into play.
The previous Ethereum Price Prediction indicates a possible bearish trend following the occurrence of a death cross. Traders can use this as a sell signal or tighten stop-loss orders, but confirmation from other indicators is crucial.
For example, the Moving Average Convergence Divergence (MACD) is stuck in negative territory, representing a sell signal and encouraging traders to consider ETH shorts.
A break below the short-term support level of $2,500 could exacerbate the impact of the death cross and trigger a sell-off towards $2,000. Last week, ETH price tested the $2,100 support level, suggesting that a further decline below $2,000 cannot be ruled out.
The IOMAP model shows that Ethereum price does not find much support above $2,500, it has a clear recovery path towards $3,000. Therefore, breaking the immediate $2,700 hurdle could trigger a quick price movement that could lead and propel ETH into a new bullish phase. up to $4,000.
Based on the IOMAP model by IntoTheBlockThe largest group of 2.12 million addresses bought 50.18 million ETH between $2,273 and $2,354. These holders are making profit and are unlikely to sell, which in turn could fuel the recovery in the coming weeks.
Frequently Asked Questions (FAQs)
ETH transfers to exchanges indicate that holders intend to sell, stake, or diversify portfolios. They signal potential selling pressure.
The Ethereum price recovery stalled below $2,700, suggesting that the selling pressure is not over yet. Given the ongoing transfers to exchanges, a further correction is likely.
The IOMAP model highlights $2,300 as a robust support, strengthened by 50.18 million ETH.
Johannes Isige
John is a seasoned crypto expert known for his in-depth analysis and accurate price predictions in the digital asset market. As the price prediction editor for market content at CoinGape Media, he is dedicated to providing valuable insights into price trends and market forecasts. With his extensive experience in the crypto space, John has honed his skills in understanding on-chain data analysis, non-fungible tokens (NFTs), decentralized finance (DeFi), centralized finance (CeFi), and the dynamic metaverse landscape. Through his persistent reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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