ETH Price Rises Despite Heavy Sell- Off Activity in the Market.
Although the market is recovering, Ethereum (ETH) appears to be on the verge of a significant price drop. Both individual investors and institutions are displaying pessimism as they continue to offload ETH on various exchanges.
Institutional Sell-off On September 10, blockchain analytics firm Lookonchain reported on X (formerly Twitter) that Metalpha, a prominent Hong Kong-based asset management firm, had sold 10,000 ETH, worth $23.45 million, to Binance (BNB). Over the past four days, the firm has offloaded a total of 33,589 ETH, valued at $77.55 million, on Binance.
Despite this substantial sell-off, Metalpha still holds 51,300 ETH, equivalent to $120 million, as of the latest reports.
Are whales abandoning ETH?
A well-known crypto expert recently posted on X, pointing out that Ethereum whales have stopped accumulating ETH since early July. Instead, they have been either selling or redistributing their holdings.
This trend indicates a waning interest from
both whales and investors in recent weeks.
If this pattern continues and institutional
investors proceed with large-scale sell-offs,
a major price decline could be imminent in
the days to come.
Key levels to watch.
Despite the current situation, Ethereum's
technical analysis shows some encouraging
signs. Notably, the leading altcoin may
experience a price surge due to a bullish
divergence on the Relative Strength Index (RSI). Additionally, it has found support at
the critical $2,150 level.
Based on historical price trends, whenever ETH reaches this key support level, it has consistently rallied by over 23%. This time, a similar surge is expected, with ETH potentially climbing to $2,700. However, this bullish outlook hinges on ETH maintaining its critical support at $2,150.
Bullish On-Chain.
Data On-chain data also supports this optimistic forecast. According to Coinglass, the ETH Long/Short ratio stood at +1.424 at the time of reporting, the highest level in the past week, indicating a strong bullish sentiment among traders.
