Will Ethereum (ETH) Drop Below $1,500 Again ?
Amidst Ethereum price facing selling pressure from large holders, analysts are divided on ETH's short-term direction. Explore insights on the second-largest crypto's price outlook.
Whale Movements Selling at a Loss
The latest blockchain data indicates that long-time holders are letting go, even after holding onto their positions during previous market cycles. The selling is happening as Ethereum stabilizes in the $1,550 to $1,700 range. This has sent mixed signals to analysts and traders, who are divided on the short-term price movement.
The blockchain monitoring company Lookonchain showed significant capitulation by a single Ethereum investor who recently sold 1,160 ETH at a massive loss of around $1.83 million. According to their data, this investor had withdrawn the same amount from the cryptocurrency exchange OKX about 11 months ago when Ethereum was priced at $3,816. By selling at $1,580, the investor incurred a loss of 58.6%, amounting to $2.6 million.
However, not all major holders are exiting their positions. Analyst CryptoGoos stated that other large investors have recently bought around 77,000 ETH worth $125 million. This indicates a high interest in buying at current ETH prices. Such unusual behavior from major holders is creating uncertainty in the market.
Technical Analysis is Mixed: Key Levels to Watch
Analysts are divided on the current price action of Ethereum and its future trajectory. Analyst CrypNuevo highlighted the price level of $1,700 to $1,550, stating it resembles past price action. The analyst is bullish as Bitcoin maintains support at the 50-week exponential moving average for an uptrend. This could be bullish for Ethereum. Due to this analysis, CrypNuevo mentioned making significant spot purchases in this price range.
On the other hand, analyst Belle is more optimistic. She believes Ethereum’s price is gearing up for a significant transformation while others focus on different matters. The analyst highlighted strong weekly trends, solid support levels, and increasing momentum as positive indicators for ETH.
Ethereum has bounced off a historical support, and its one-day RSI is close to levels of previous local bottoms. In August 2024 and 2023, its RSI had reached a score of 21 just before bouncing back. This time, ETH’s RSI reached a 25.75 score, suggesting ETH could indeed correct further to the demand zone at $1,100 or even down to $880.
While Ethereum whale movements create short-term uncertainty, there are mixed signals on price direction. Some analysts remain optimistic about ETH’s long-term outlook, given the positive underlying momentum. Investors should remain vigilant and closely monitor upcoming developments as Ethereum could experience volatile price movements in the near future.
Charles Ledoux
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
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