Ethereum encounters significant bearish pressure as dwindling whale participation raises questions about its future price movements.
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ETH’s Long/Short Ratio currently sits at 0.95, signaling a bearish outlook among traders.
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A daily close above the $1,840 threshold may shift market sentiment and spark a potential rally.
Ethereum [ETH] has recently displayed signs of losing traction with whale investors, prompting concerns over its price trajectory.
After breaking free from a prolonged descending trendline, ETH initially experienced a surge of over 16%. However, this upward momentum has since stagnated, leading to a consolidation phase that might have dissuaded whale investors.
This trend is underscored by a four-day period of minimal price movement, indicating waning interest among larger stakeholders.
Are whales abandoning Ethereum?
Recent on-chain data from IntoTheBlock reveals a startling 62.42% decrease in whale transactions valued between $1 million and $10 million over the past week.
This sharp decline suggests that institutional players are retreating from the market.
Source: IntoTheBlock
Furthermore, transactions in the $100,000 to $1 million range and those between $10,000 to $100,000 also saw declines of 43.14% and 27.94%, respectively, in the past week.
On-chain analytics indicate that large transaction volumes are down by 51.68%, further reflecting reduced whale engagement in the market.
Taken together, these metrics suggest a bearish trend for Ethereum and could lead to a potential price drop.
Traders’ bearish view
Currently, ETH’s Long/Short Ratio is at 0.95. Approximately 51.17% of top ETH traders are adopting short positions, while 48.83% remain in long positions, based on data from Coinglass.
Source: Coinglass
This prevailing sentiment suggests that not only whales but also retail traders are leaning towards a bearish outlook, anticipating potential price declines.
As of now, ETH is priced at approximately $1,805, experiencing a slight 0.55% decrease over the last 24 hours.
The trading volume has also dropped by 40% during this timeframe, indicating lower participation from both traders and investors compared to the previous day.
Ethereum’s price action and key levels
According to COINOTAG’s technical analysis, Ethereum is at a critical juncture as it enters a narrow range within an ascending triangle pattern on the four-hour time frame.
Source: TradingView
Historically, a breakdown from this pattern could result in a steep decline, potentially leading to a drop of over 7% to revisit the horizontal support level around $1,690.
Conversely, a breakout is possible if ETH exceeds the neckline of the ascending triangle, closing a four-hour candle above $1,840. Such a breakthrough could initiate a significant upward trend.
Despite the current challenges, ETH maintains its position above the 200 Exponential Moving Average (EMA) on the four-hour chart, indicating that the asset is still in an upward trajectory.
Conclusion
In summary, Ethereum finds itself at a pivotal point, with decreasing whale interest and bearish trader sentiment indicating potential challenges ahead. The upcoming price levels will be crucial in determining its future movements. Investors are advised to remain vigilant as the situation evolves.
