However, recent trends suggest that its upward trajectory might be under threat. Since February 2023, Ethereum whales, typically large holders with significant influence on market movements, have been consistently cashing in on the elevated prices. Their actions have led to the offloading or redistribution of over 5 million ETH, translating to an approximate value of $8.5 billion.
This whale-driven exodus is not a fleeting event. Ali Martinez, a noted crypto expert, highlighted on October 10 via X (previously known as Twitter) that there’s a conspicuous absence of any signs indicating a shift toward ETH accumulation.
With Ethereum trading at $1,588 at the time of writing—1.23% down in the last 24 hours and shedding 4.43% over the past week—the market seems to be in a cautious mood.
ETH technical analysis
From a technical standpoint, Ethereum has marked important price levels to watch. Strong support lies at $1,498.81, with resistance hovering around the $1,666.23 mark. While the token has impressed with a 22% growth over the past year, outperforming 84% of the top 100 crypto assets, its recent performance raises eyebrows. Out of the last 30 days, only 16 have been in the green, at 53%, and is currently trading at $1,589.
Another alarming signal is Ethereum’s position concerning its 200-day simple moving average—a key metric for understanding long-term market trends. Currently trading below this average, it reflects bearish sentiment. Not to mention Ethereum is also down 67% from its all-time high.
In the fast-paced world of cryptocurrencies, the movements of big players, or ‘whales’, can often provide early warning signs of impending market shifts.
While Ethereum’s long-term prospects remain promising, given its historical performance and the myriad of real-world applications it supports, the recent actions of whales, coupled with some concerning technical indicators, suggest that investors should proceed with caution.
For now, the market watches and waits, with many hoping for a return to bullish sentiment soon.
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