While Bitcoin is struggling to maintain its price level above $27,500, Ethereum is also trying to get past the critical $1,650 threshold. Amid the increasingly changeable days, whales don’t sit still; even those who have been inactive are now playing an important role. As the number of large-scale transactions has noticeably increased, traders are wondering whether more volatility is at stake and what Ethereum’s next move will be.
Whales lose their belongings heavily
While many retail investors are cautiously optimistic about ETH trading around $1,650, it’s the whales that have really stolen the spotlight. Their sudden buying and selling activities have led to increased volatility in the price chart, causing the ETH price to make wild swings near crucial levels.
Based on recent numbers from Coinglass, Ethereum’s open interest (OI) has experienced a $100 million increase in just a few hours. As the price of ETH approaches the crucial $1,650 mark, traders are gradually taking positions in anticipation of a significant price shift.
Nevertheless, Ethereum faces the risk of a potential sell-off as whale activity raises alarms.
On-chain statistics show a significant increase in large transactions, skyrocketing from a low of 1,210 to 2,590 in just 48 hours. Furthermore, the total value of transactions executed by whales has almost doubled, from $971 million to $1.9 billion, creating uncertainty about Ethereum’s price trajectory.
One Ethereum whale, which was inactive for two years, was reactivated four days ago. This whale moved 10,000 ETH ($16.5 million) from his wallet and then to Binance, OKX and KuCoin. Today the same whale transferred another 10,000 ETH.
In addition, another Ethereum whale who participated in the 2014 ICO and holds approximately 254,908 ETH (worth approximately $422.6 million) deposited 6,000 ETH (approximately $10 million) on the Kraken exchange.
The activities of both whales could significantly increase selling pressure, potentially causing Ethereum’s price to fall as supply exceeds demand.
What’s next for the ETH price?
The current price of Ethereum is meeting resistance at the key 20-day EMA level as it experienced a sell-off as it approached the high of $1,660. Nevertheless, bullish sentiment remains strong, preventing an immediate decline and suggesting the possibility of a recovery. At the time of writing, ETH price is trading at $1,645, down more than 0.6%.
The 20-day EMA appears to be stabilizing and the Relative Strength Index (RSI) is hovering just above the midpoint, indicating a bullish reversal. If the buyers can hold the price above the 20-day EMA, Ethereum could retest the crucial resistance at $1,670. If successful, bulls could drive the price north and break the USD 1,750 level. However, bears will defend this level aggressively.
On the other hand, the bears may have different intentions. They could try to pull the price back below the 20-day EMA, aiming to catch bullish traders off guard. A dip below $1,604 could trigger a decline towards a potentially strong support level at $1,530.