Ethereum Will Buy $13 Million ETH, Bullish Signal?
Amidst this bearish market sentiment, crypto whales are beginning to show interest in Ethereum (ETH), the second largest by market cap. On September 18, 2024, the on-chain analysis firm Lookonchain posted on X (formerly Twitter) that the whale sold 5,690 ETH, $13.1 million, and bought 5,660 ETH at an average price of $13.1 million yesterday. 2,316 dollars
ETH purchase before the federal decision
By doing this, this whale lost 30.8 ETH worth $71,400 in one day. However, this huge purchase of Ethereum took place before the Fed rate cut. This whale appears to be predicting the impact of the Fed's decision, which explains why the US stock market's opening bell was bought.
Bearish On-chain parameters
Despite this massive buying of ETH, the on-chain metrics are still flashing a bearish signal. According to on-chain analytics firm Coinglass, ETH's Long/Short currently stands at 0.966, indicating bearish market sentiment among traders. Additionally, the futures open interest decreased by 2.5% in the last 24 hours, indicating a reduction in interest from traders, which may be due to a bullish market outlook.
Putting all the data together, the current sentiment is very weak and traders seem hesitant to build long or short positions. Currently, 50.85% of top ETH traders hold short positions, while 49.15% hold long positions. This indicates that the bears are currently dominating the property.
Ethereum technical analysis and upcoming levels
According to expert technical analysis, ETH looks bearish and is currently at a critical support level at the $2,230 level. Additionally, it is facing resistance from the downtrend line. Based on the historical price progress, the price of ETH may rise to $2,800 if it closes the daily candle above the $2,470 level.
Meanwhile, ETH's Relative Strength Index (RSI) is in oversold territory, suggesting a possible price reversal in the coming days.
At the time of press release, ETH is trading near the $2,300 level and has lost more than 2.5% in the last 24 hours. During the same period, the transaction volume increased by 10 percent.
