Ethereum: ETH whales buy during crypto winter

Cold shower for altcoins – Bitcoin was hit by the case FTX, and altcoins are not spared. Indeed, within a few days, Ethereum has fallen over 30% reaching a price below $1,100. While the situation is delicate, it seems that the whales keep shopping. Was this finally the final capitulation, or was the worst yet to come? Let’s take a graphical look at the situation of altcoins!

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Ethereum on the way to a change of dynamics in the medium term?

We said it in the introduction, Ethereum has given up 30% due to the bad news generated by the FTX platform. In contrast, Ethereum (ath), how barnnce currency, it hasn’t hit another low since last May. Ethereum appears solid given the situation:

Ethereum price against the dollar (3W)

The situation is not catastrophic for Ethereum at this time unit. The trend is wave since the explosion of the area in 1900 dollarsbut buyers have responded at the level of $1000 monthly support. Buyers have the option to change the momentum and mark a double bottom in the event of a close on it resistance. For now, the course remains fragilebecause all returns to the level of institutional biases (EMA 9/EMA 18) are rejected. Also, the price always evolves under bearish trend line. It will be necessary to overcome the downward trend line and change the dynamics to hope for a return to the growth of this asset.

The moment is always wavestuck under bearish trend line. Here again, it will be necessary to go beyond this resistance to find the colors.

Ethereum’s short-term decline

Ethereum remains in ups and downs descendants as of August 2022:

Ethereum is down in the short term.
Ethereum Price vs Dollar (3D)

Ethereum is in one regular between 1000 dollars AND 1900 dollars, but since the peak of August, sellers seem to be in control. Based on the situation, a refusal at the level of institutional bias and a return to the level of weekly support should not be neglected (red arrow scenario). It would then be a new pressure on the support it could well provide.

A scenario wave can be raised in case of a fence above 1680 dollars. Indeed, such a close would mark a new high and, thus, indicate that buyers are present. Beware, the prize would find later resistance at the level of 1900 dollars.

The moment is always fragilewe see that the RSI is trying to exceed the zone at 60. This area has been resisting since November 2021.

Immediate Reversal for Ethereum to Bitcoin?

The ETH/BTC pair is at a weekly range. Since Merge, Ethereum was emerging fragilitybut it seems that the second capitalization is recovering against the king of cryptocurrencies:

Ethereum is strong against Bitcoin.
Ethereum Price vs Bitcoin (3D)

At the moment, Ethereum is solid against bitcoin. The price of the pair is moving above intermediate support and on it bearish trend line launched in December 2021. Currently the price is at the level of institutional biases oriented upwards. scenario wave represented by the green arrow where the course pop and exceed resistance. If this scenario occurs, the resistance will need to be turned to SUPPORTING and that the price definitely leaves the weekly range.

scenario wave is represented by the red arrow in the graph. If the sellers prevail, the intermediate support and the downtrend line would give way, and the price would then return to SUPPORTING IN end of range. This scenario would not be really positive for altcoins.

In turn, momentum is fragileit will be necessary to overcome bearish trend line launched in August 2022. The moment is trying to change the moment, this will have to be confirmed by closing above 62 then 73 of RSI.

Bitcoin’s dominance remains fragile

The dominance of bitcoin can fall in the coming weeks:

Bitcoin's dominance may decline in the coming weeks.
Bitcoin Dominance Chart (3D)

Bitcoin’s dominance is in a regular between the upper limit at 48% and the lower limit at 40%. Recently, the institutional bias has passed wave and the course can be done download at the EMA level. In case of decline, dominance can find support all around 39% of dominance. Weekly support will have to become one resistance to hope for one high performance altcoin vs bitcoin.

Be careful, in case of a fence above 42% of dominance, the dynamic would change and capital would flow into Bitcoin. The moment is fragilea new one refusal can appear in bearish trend line in the following days.

To analyze in the chain : whales buy dip

Whales are entities with more than 1000 BTC. For Ethereum, it may be interesting to see the behavior of entities with more than 10,000 ETH :

Whales buy Ethereum.
Number of addresses with more than 10,000 ETH Source: Glassnode

As can be seen, these subjects have scattered during the period from July 2021 to January 2022. Then, in March 2022, these entities began to huddle despite the asset falling below 1000 dollars. Recently, in November 2022, the whales returned toPURCHASE.

From these data it can be thought that the phase of distributed phase e has also been completedaccumulation continues, even after the FTX debacle. It is the same observation at the level of potential validators for ETH 2.0:

Actors seem to trust the proof of action.
Number of addresses with balance greater than 32 ETH Source: Glassnode

Ethereum has recently improved to proof of action, was the event of the month of September. Since then, the curve for the number of possible validators is justup, especially since the beginning of November. There seems to be one operator confidence to this asset that just passed Proof of stake.

Ethereum is still fragile on a weekly basis, but buyers have the opportunity to reverse the momentum by pulling the resistance at $1,900. In the shorter term, buyers will need to push to mark a new level above $1,680. Against Bitcoin, Ethereum remains solid and, despite FTX sinking. The whales seem to continue to gather, and have even been particularly interested since early November. Could the end of the year be a little sunnier?

Cryptos and blockchain technology are still new and volatile sectors. Any investment involves risk. As a well-informed investor, have you done your research and decided to take the plunge? Current prices are an opportunity to add some satoshi to your wallet! To do this, sign up to Bitget (commercial link).

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