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Crypto Whales Show Interest in Ethereum: Market Developments Explained

Sep 18, 2024
  1. ETH Buyback Before Fed Decision
  2. Bearish On-chain Metrics
  3. Technical Analysis and Key Support Levels

Crypto whales have shown interest in Ethereum (ETH), despite the bearish market sentiment. On September 18, 2024, Lookonchain announced that a whale who sold 5,690 ETH worth $13.1 million bought back 5,660 ETH for the same amount shortly after.

ETH Buyback Before Fed Decision

This transaction resulted in a loss of 30.8 ETH worth $71,400 in a single day. The buyback occurred just before the Federal Reserve's rate cut announcement, possibly anticipating its impact, which could explain the timing during the opening bell of the US stock market.

Bearish On-chain Metrics

Despite the large purchase, on-chain metrics still indicate bearish sentiment. According to Coinglass, ETH’s current Long/Short ratio stands at 0.966, showing bearish sentiment among traders. Its futures open interest declined by 2.5% in the last 24 hours, suggesting reduced trader interest due to the bearish outlook.

Technical Analysis and Key Support Levels

Expert technical analysis shows ETH is at a crucial support level of $2,230, facing resistance from a descending trendline. Historical price momentum suggests that if ETH closes its daily candle above $2,470, its price could rise to $2,800. ETH's Relative Strength Index is in oversold territory, suggesting a potential price reversal in the coming days. At press time, ETH is trading near $2,300, with a price decline of over 2.5% in the last 24 hours. During this period, trading volume increased by 10%, indicating higher participation from traders amidst the market downturn.

Whales are showing interest in Ethereum despite bearish signals, indicating possible strategic shifts among major players ahead of economic decisions.

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