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Ethereum Price Prediction: Whales that sold the top are now buying ETH, should you?

  • Ethereum price lacks strength and is likely to oscillate between the $1,280 and $1,080 barriers for the foreseeable future.
  • Whales holding 100 to 10,000 ETH are gobbling up the altcoin after the recent selling frenzy.
  • A daily candlestick close above $1,280 or a breakdown of $1,080 will define the directional bias for the smart contract token.

Ethereum price shows a lack of buying pressure as it approached a crucial hurdle recently. As a result, ETH is now facing a sell-off that could propel it lower than November 9 lows. 

Ethereum price loses bias

Ethereum price dropped 36% in five days and slipped inside the $1,280 to $881 range. The midpoint of this bracket at $1,080 came to the bulls’ rescue, resulting in a 25% recovery rally that set a local top at $1,350. 

A lack of buying pressure combined with investors booking profits caused the Ethereum price trend to reverse around the aforementioned point, leading to a 7.8% pullback so far. Going forward, investors can expect ETH to reverberate inside this range, extending from $1,080 to $1,280.

A flip of either range limits will determine the overall direction for Ethereum price. An ideal scenario would include ETH sweeping the equal lows formed at $998 followed by a 40% upswing to the $1,400 hurdle.

ETHUSDT 1-day chart

ETHUSDT 1-day chart

Supporting this massively bullish outlook for Ethereum price is the Supply Distribution metric for whales holding between 100 to 10,000 ETH. This category of investors timed the market perfectly as their number dwindled from 46,664 to 45,819 between September 14 and October 2. During the same period, ETH dropped 23%. 

Between November 6 and 9, the number of these have spiked from 45,484 to 46,373. Roughly 800 new whales joined this category, reflecting accumulation. Therefore, investors can bank on the decisions of these smart money holders and expect ETH to rally as well.

ETH supply distribution 

ETH supply distribution 

While things are looking up for Ethereum price, a daily candlestick close below $1,080 will trigger a downtrend. As long as a sweep of $998 is followed by a quick recovery, the bulls should be fine.

However, a daily candlestick close below $998 will invalidate the bullish thesis for Ethereum price and trigger a correction to the range low at $881.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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