The price of leading altcoin Ethereum (ETH) may have slowed down the downtrend. But it still rolls deep in murky waters. Data from analytics firm Glassnode shows whales are selling. Meanwhile, data from CryptoQuant shows that Ethereum whales are manipulating the price of ETH with their exchange activity.
Are whale sales keeping the leading altcoin price out of the rally?
cryptocoin.comAs you follow, Ethereum started losing ground a few days before Merge. Glassnode’s on-chain data shows that whales contribute greatly to selling pressure. The number of addresses with 1,000 and more ETH dropped to 6,356 on September 22, a few days after reaching 6,516. Also, the chart below reveals that these whale addresses haven’t stopped dumping yet. There are currently 6,329 addresses in this group.
Ethereum price confirmed the support between $1,200 and $1,300. However, it did not make any significant upside progress. According to crypto analyst John Isige, pressure from whales may be preventing ETH from reaching $2,000 northward. The analyst continues his evaluations in the following direction.
On the other hand, bulls are generally in control. However, it lacks the momentum to sustain the move above the middle border resistance of the falling channel at $1,350. A closer look at the MACD (Moving Average Convergence Divergence) indicates an incoming buy signal. Buyers should wait for the 12-day EMA (Exponential Moving Average – red) to rise above the 26-day EMA (blue) before confirming buy offers. MACD’s move above its average line (0.00) will likely confirm Ethereum’s bullish trend.
OBV (On Balance Volume) is another important tool that traders can use to verify whether the market has the potential to continue rising. It uses volume flow to predict changes in asset prices. As the volume increases, it’s possible that the OBV is signaling a break coming ‘as a tightly coiled spring’.
For now, a break above the general line of the channel would likely open the way for an additional move to $1,400. From here, the altcoin would be in a better position to climb the ladder to $2,000. Note that as the price rises, speculation will likely increase overall. Because more and more buyers are betting on a sustained breakout.
Are Ethereum whales manipulating prices?
Ethereum whales have long had a significant impact on the token’s price in the market. Data from CryptoQuant shows that whales are manipulating the price of ETH. This effect aroused a new curiosity. In a Quick Take published on the blockchain data analytics site, an analyst suggests that the activity of whales on exchanges between 2020 and 2021 raises suspicion. The post claims that whales deposit ETH on exchanges and continue to push prices up, then sell at these higher prices.
The argument is based on data showing that the price of ETH increases rapidly as the balance of ETH on exchanges increases. Also, the analyst states that this is not the market norm in the ETH market. In current market examples, ETH and other crypto prices go down when stock market entries increase. The analyst makes the following statement on the subject:
Whales deposit ETH on the stock market and raise prices to sell it at a higher price. Ethereum price has skyrocketed as the stock market (on average) continues to rise between 2020 and 2021. When stock market entry (the average) increased, it was a short-term, long-term low.
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