A big investor (whale) in Ethereum spent $13 million to buy Ethereum (ETH). Does this mean that Ethereum will rise?
The market sentiment is not very good now, and everyone is pessimistic, but big investors in cryptocurrencies have begun to be interested in Ethereum (ETH, which is the second largest cryptocurrency by market value). On September 18, 2024, an on-chain analysis company called LookOnchain posted a message on X saying that a big investor who had previously sold $13.1 million worth of Ethereum at a price of $5,690 bought back $13.1 million worth of Ethereum at a price of $5,660 yesterday, with an average price of $2,316. This big investor repurchased Ethereum before the Fed made the decision to cut interest rates. This big investor may have anticipated that the Fed's decision would have an impact, so he bought it when the US stock market opened. Although a lot of Ethereum was bought, some indicators on the chain still show bearish signals. According to data from Coinglass, an on-chain analytics company, the long-short ratio of ETH is now 0.966, which indicates that traders are still pessimistic. Moreover, its future open interest has decreased by 2.5% in the past 24 hours, which means that traders are less interested, probably because of the bad market outlook. Taking all the data into consideration, the sentiment is still quite pessimistic, and traders are hesitating whether to go long or short. Now, 50.85% of the top ETH traders are short, while 49.15% are long, which indicates that short sellers have the upper hand now. Looking at the technical analysis of Ethereum and the price levels it may reach next, experts feel that Ethereum is bearish now, and the price is at a key support level of $2,230, and it is also facing resistance from the descending trend line. Judging from the previous price trend, if the ETH price can close above $2,470, it is possible to rise to $2,800. Meanwhile, the relative strength index (RSI) of ETH is in the oversold zone, which means that the price may reverse in the coming days. At the time of writing, ETH is trading near $2,300, having fallen more than 2.5% in the past 24 hours. However, its trading volume has increased by 10% during the same period, indicating that despite the market decline, traders are becoming more engaged.$ETH