As the broader market correction pauses over the weekend, the Bitcoin and Ethereum prices surge. However, the backdrop of a massive correction at play warns of a bearish continuation.
In such conditions, major events mark a highly volatile crossroads for Ethereum near the $2,300 level. With a major whale sell-off and network growth providing contrast, a legendary whale makes a comeback. Will the increased volatility push Ethereum to $2000 or lead to a breakout rally?
Wallet Linked to Vitalik Sells 3,800 ETH
A multi-signature wallet recently receiving 3,800 ETH tokens from Vitalik Buterin is on a selling spree. After receiving almost $10 million worth of Ethereum on August 9 and 30, the wallet has released 760 ETH in the market for 1.835M USDC at an average price of $2,414.
According to Spot On Chain, the multi-signature address marked by Arkham as controlled by Vitalik’s wallet: 0xfE…03B2 has been selling ETH since receiving 3,800 ETH (about $9.99m) from Vitalik’s related wallets on August 9 and 30. Currently, 760 ETH has been sold for 1.835…
— Wu Blockchain (@WuBlockchain) September 9, 2024
Ethereum Price at Channel’s Bottom
Following a bearish end to last week, the Ethereum price dropped by 5.29%, following the 11.71% correction the previous week. Hence, in the past 14 days, the price of Ethereum has dipped by 16.37%.
Currently, it is trading at $2292, a discount of 44.24% from its 52-week high of $4093. In the 4-hour chart, the Ethereum price action reveals a falling channel pattern.
Source: Tradingview
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Within the falling channel pattern, the Ethereum price takes a bull cycle over the recent weekend by forming a morning star pattern near the support trendline. Since then, the Ethereum price has increased by 3.23% but has taken resistance from the 20-period EMA.
Marking a 0.56% drop in the recent 4-hour candle, the Ethereum price action warns of a bearish cycle within the channel. Furthermore, the higher price rejection in a previous candle from the $2343 resistance level warns of a crash in Ethereum back to $2200.
Meanwhile, the bullish divergence in the 4-hour RSI line is crystal clear. The RSI maintains a sideways trend as the Ethereum price drops. However, the broader market sentiment puts the Ethereum trend in a bearish gear.
Underlying Shift of Momentum in Ethereum
With a minor recovery in ETH price over the weekends, Ethereum registers a 4-month high in network growth. This comes on a Sunday, a day known for the least activity in the crypto market.
The Ethereum network boost comes with 126,210 new wallets. With a surge, the network teases a bounce back in the ETH token price that powers the ecosystem.
📈 Ethereum has just hit a 4-month high in network growth, on a day (Sunday) that is traditionally the least active of the week. 126,210 new wallets created is indicative of rising network utility and anticipated price bounces from the $2,200-$2,300 level. pic.twitter.com/zQaKbBdznK
— Santiment (@santimentfeed) September 9, 2024
Amid the recent bottom formation, a smart whale took the opportunity to capture Ethereum at lower levels. Best known for buying Ethereum at an average of $1,322 in November 2022 to make more than $4 million in profits, the whale makes another purchase this week.
Taking in 5,000 ETH in its holding, worth $11.46M, at the bottom, the growing confidence in whales is signaling a surge ahead.
A smart whale bought 5,000 $ETH($11.46M) at the bottom again in the past 2 days!
The whale bought 5,200 $ETH at an average price of $1,322 in November 2022.
Then sold it at an average price of $2,093 in January, December 2023, and January 2024, making more than $4M!… pic.twitter.com/yTKB12dU4i
— Lookonchain (@lookonchain) September 9, 2024
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In conclusion, as the interest in Ethereum whales increases with a surge in network activity, the bullish chances are increasing. However, Ethereum must maintain dominance over critical support levels to turn the recovery run into a breakout rally.
Ethereum’s support levels are $2,116 and $1,906. Meanwhile, its resistance levels are $2,343 and $2,549.
