The broader crypto market retraced amid increased volatility in the global financial market. Ethereum [ETH] especially saw heightened volatility, dropping from $2171 to a low of $2087.
As of this writing, Ethereum traded at $2,100, down 1.6% on the daily chart. With the price slip, the altcoin fell below its 50-day EMA, suggesting the short- to mid-term trend was flipping bearish.
Before this, ETH had been on an upward trajectory, hiking 3% over the past week and holding above the 20-day EMA. With Ethereum failing to sustain the uptrend, some investors, especially whales, have capitulated.
Ethereum whale moves $128 million in ETH
As Ethereum continued to trade around $2k, some whales appeared to grow impatient and began moving their assets. A whale deposited 60,001 ETH, worth $128.8 million, into Coinbase, per Arkham data.
If the whale decides to sell, this pressure will further strain the already struggling market, potentially causing additional downside risk.
The recent whale movement has reflected the broader sentiment among the U.S. investors. Looking at the Coinbase Premium Gap, it has been negative for 16 days out of the last 30.
This showed that U.S. investors are mostly bearish and have continued to sell during this period.
However, the Spot side whale activity showed that whales have accumulated at the $2.1K level. Ethereum’s Spot Average Order Size data from CryptoQuant showed consistent whale orders over the past month.
Is ETH’s $2K support at risk?
Ethereum faced strong downward pressure as the entire crypto market retraced amid growing global market uncertainty.
But despite the conflicting forces, the market has shown a relatively serious attempt to go to the upside.
At press time, the +DI sat around 24 while the -DI held around 19, showing weak upside momentum. Moreover, the ADX and ADXR remained around 7, suggesting a ranging market.
Based on these indicators, if U.S. investors remain bearish while others continue to buy, ETH will remain range-bound between $2.1k and $2.3k. Equally, a breakdown below this range will see ETH drop to $1980 if demand from other participants dwindles.
Final Summary
- An Ethereum whale deposited 60,001 ETH, worth $128.8 million, into exchanges.
- ETH is facing strong downside pressure from the U.S. investors, making demand insufficient to sustain an uptrend.