Ethereum Whales Remain Silent, Price Stalls, Could ETH Drop to $2,278?Ethereum whales have been silent since July, with their reduced buying activity leading to a stagnant ETH price. Despite an upsurge in Ethereum network growth on Sunday to 126,000, a four-month high, it has since declined, suggesting potential for a short-term price dip
Ethereum Whales Remain Silent, Price Stalls, Could ETH Drop to $2,278?
Ethereum whales have been silent since July, with their reduced buying activity leading to a stagnant ETH price. Despite an upsurge in Ethereum network growth on Sunday to 126,000, a four-month high, it has since declined, suggesting potential for a short-term price dip.
Whale Silence Impacts Ethereum Price
On-chain data shows that addresses holding more than 10,000 ETH stopped accumulating ETH after July 5th. This shift significantly impacted the ETH price. Between July 8th and 16th, ETH surged from $2,930 to $3,485, but then failed to break above the $3,500 mark, suggesting a role for large-scale distribution in pushing down the price.
Ethereum Network Growth Spikes, But Could be Short-lived
Data from Santiment shows a significant increase in the number of new Ethereum wallets created on Sunday, September 9th, indicating increased demand for ETH. This spike led to an ETH price rebound to $2,300. However, the numbers have since dropped back to 30,400, suggesting that the demand surge might be temporary, and the price rally may not be sustainable.
Ethereum Price Faces Resistance, Could Drop to $2,278
Ethereum is currently trading at $2,312, but it is facing potential resistance on the 4-hour chart, namely the 50%, 61.8%, and 38.2% Fibonacci retracement levels, starting from $2,384. Although buyers might try to accumulate, ETH could struggle to break through these levels.
Balance of Power Indicator Shows Increased Selling Pressure
BeInCrypto analyzed the Balance of Power (BoP) indicator, which measures the strength of buyers and sellers. Currently, the BoP has swung negative, indicating increased selling pressure. This divergence with the Ethereum price suggests that the current uptrend could reverse.
Ethereum Price Prediction
If sellers continue to dominate, the price of Ethereum could drop to $2,278. Further selling pressure could push it down to $2,149.
However, this outlook could change if whales unexpectedly start buying again in large quantities. In this scenario, ETH could rise to $2,645.
Conclusion
The silence of Ethereum whales has significantly impacted the ETH price, which is currently facing resistance and could drop to $2,278. Despite the spike in Ethereum network growth, it could be temporary, and the price rally may not be sustained.
However, if whales resume buying activity, the price of Ethereum could rebound.
Please note that the above analysis is for informational purposes only and does not constitute investment advice.
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