According to crypto analyst John Isige, Ethereum remains within a rectangular pattern after being rejected at $1,400. The analyst says investors will likely take a hands-on approach until the altcoin price explodes. He also notes that ETH needs to stay tight to prevent further declines to $1,100 and support $1,300. We have prepared John Isige’s ETH analysis for our readers.
“Ethereum whales spark selling spree”
cryptocoin.comAs you follow, Ethereum has struggled to retain key support areas since the Merge update. The reversal of the bull trend has also been difficult. But on-chain data from Santiment shows that the whales are busy emptying their wallets.
For example, addresses holding between 1,000 and 10,000 tokens fell from 5,634 to 5,489, as recorded on September 14. A similar bearish trend is also noticeable between addresses with 100,000 and 1,000,000 tokens, which fell one point from 130 to 129 over the same period.
As long as whales continue to sell, it is possible that rates will continue to play against Ethereum’s recovery. In other words, the altcoin has yet to touch its final floor price to ignite a sustainable uptrend in the short term.
“A significant move north of the altcoin price is unlikely”
Crypto analyst Rekt Capital says the altcoin price respects the $1,300 support. He notes, however, that declining buying interest is unlikely to sponsor a significant move north.
Compared to early 2021, the response from the same support was much more variable. That’s why it created a negative wick. The analyst predicts that if a new weekly candle closes below $1,300, the downside will continue to $1,100.
Ethereum (ETH) technical analysis
Ethereum fell from $1,400 in bullish draws on Tuesday. The altcoin is now trading marginally above $1,300. The existence of massive buyer congestion at $1,255 cut the $1,200 retracement short. However, buyer interest has waned. Therefore, a return to $2,000 will likely remain a pipe dream in the near term.
A rectangular pattern on the four-hour chart reveals a volatile market. Ethereum will likely move sideways within the rectangle until a breakout occurs on either side. For now, specifically the Moving Average Convergence Divergence (MACD) is moving below the average line into negative territory. So the odds are in favor of the bears. In addition, the negative divergence from the price supports this pessimistic analysis.
If the $1,300 support remains intact, it is possible for Ethereum to start a bullish trend. Still, the 50-day SMA (red) will likely continue to limit price action at $1,323. On the downside, if the bears break the support areas at $1,300 and $1,200 respectively, Ethereum price will increase its forecast to $1,100.
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