Ethereums Fate Hangs on Two Key Levels as Whales Accumulate: On-Chain Data Reveals

Ethereums Fate Hangs on Two Key Levels as Whales Accumulate: On-Chain Data Reveals


Analysis of on-chain data shows that despite the challenging market conditions, Ethereum investors are accumulating and confident that a rebound is imminent, with support provided by an ascending trendline and the 50-day EMA likely to determine the direction of the largest smart contracts token.

The cryptocurrency market structure is still in a dilapidated state, facing shrinking volumes. Ethereum (ETH) price has been pivoting around $1,800 for several  days with the tug of war betwixt the remaining bulls and bears getting fierce.

2 key levels are likely to determine where the largest smart contracts crypto token with $214 Billion in market cap is heading, beginning with an ascending trendline and the 50-day Exponential Moving Average (EMA).

Regardless of the stability exhibited by Ethereum (ETH) following the rejection from $2,000 earlier this year, its downside appears vulnerable. Having stated that support provided by the trendline around $1,750 is bound to play a critical role in what goes on next.

Ethereum (ETH) Whales Back in Accumulation Mode

At the time of publication, Ethereum (ETH) price is currently worth $1,775 amid the danger of a weakening downside. It has been a challenging time for most digital currencies with on-chain data from Glassnode indicating that Ethereum (ETH) addresses with at least 10,000 coins had hit a six- 30 days low of 1,156 on Wednesday.

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Nonetheless, this analysis looks beyond the worrying picture, using additional on-chain data to show that the situation is not that dire for the second- largest crypto.

The same Glassnode likewise shared more statistics from the network, with the number of non-zero balance addresses increasing to an record-breaking peak of 99,597,841.

Ethereums Fate Hangs on Two Key Levels as Whales Accumulate: On-Chain Data Reveals Ethereum (ETH) No of addresses | source Glassnode

The situation could even be getting better if we consider on-chain data from Santiment, which outlines that investors are accumulating Ether as opposed to selling. For example, the chart below shows that the supply held by top addresses had soared significantly over the last 30 days.

The cryptocurrencies  supply held in known exchange addresses had dropped considerably. On the other hand, supply held by non-exchange addresses was increasing consistently.

Ethereums Fate Hangs on Two Key Levels as Whales Accumulate: On-Chain Data Reveals Ethereum (ETH) supply distribution | source Santiment

It is worth keeping in mind that investors send their crypto tokens to exchanges when they   intend to sell, otherwise, they prefer to keep their holdings off-exchange platforms.

On the other hand, when supply held by exchanges is reducing it implies that selling pressure is likewise weakening – a situation likely to nurture a positive  tendency breakout. Furthermore, these metrics suggest that investors are on an accumulation spree.

What Does This Accumulation Mean for Ethereum (ETH) Price?

Accumulation suggests that investors are confident that although the present market structure is not favorable, a rebound is in the offing in the short term.

Along with that, the Moving Average Intersection Divergence (MACD) outlines that buyers are slowly gaining the upper hand.

For those new to this indicator, underlying the chart below, a buy signal comes into the market when the MACD line in blue crosses over the signal line in red.

Another signal to watch out for from the momentum indicator is its movement from the negative region (current position) to the positive territory. Such a move suggests that buyers are getting stronger.

Ethereums Fate Hangs on Two Key Levels as Whales Accumulate: On-Chain Data RevealsETH/USD daily chart

Meanwhile,  Ethereum’s downside is sitting on support provided by 100-day EMA (in blue) at $1,775. Below this is the ascending trendline, which as illustrated in the chart, has remained relevant to Ethereum (ETH) since November.

In that case, Ethereum (ETH) is expected to retest the trendline, sweep through fresh liquidity and start the much-awaited rebound to $2,000.

Nonetheless, if declines overwhelm the trendline support, all hell could break loose, and increase the danger of revisiting levels at $1,600 and $1,450, respectively especially if the 200-day EMA (in purple) does little to prevent the losses.

Evaluating Ethereum (ETH) Price With Other Indicators

The Money Flow Index (MFI) has rebounded from levels next to 20 into the upper half of the neutral region. This bounce implies that more money is flowing into Ethereum (ETH) markets compared to the money flowing out. If sustained, we can anticipate a tendency reversal in the following sessions or several  days.

Ethereums Fate Hangs on Two Key Levels as Whales Accumulate: On-Chain Data RevealsETH/USD daily chart

In the same chart, the negative divergence in the Relative Strength Index (RSI) exhibits growing overhead pressure in Ethereum (ETH) markets.

That stated, if Ethereum (ETH) does not shoot over $1,800 soon, we could anticipate more downside action, possibly to the ascending trendline as analyzed. Here, a rebound could commence with the help of fresh liquidity and the accumulation between investors, as earlier established.

yPredict’s Viral Presale is Selling Out Fast

As investors wait for the start of a new era for the cryptocurrency industry in Hong Kong, it would be prudent to begin diversifying portfolios early enough.

Up-and-coming projects like yPredict allow investors to buy highly discounted crypto tokens in their presale stages.

The InsideBitcoins.com team analyzes these emerging ecological systems weekly, to attract you some of the best cryptocurrency presales to buy for 2023.

In brief, yPredict is an AI-powered trading and market intelligence platform that mainly concentrates on helping investors block out the noise and see the bigger picture which is critical to making the desired profits.

yPredict intends to strengthen its technological capabilities and deliver innovative Artificial Intelligence (AI) solutions to its clients.

In the meantime, the team is introducing YPRED crypto tokens in the market via a viral presale that has raised $1.69 million in a matter of weeks.

Investors are buying YPRED for $0.09 in stage 6 but this price will increase to $0.1 in the following round, while the crypto token is expected to list on exchanges at $0.12.

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