Whales Are Accumulating ETH at the Lows While Retailers Are Panicking and Liquidating Their Investments
- 王林Original
- 2024-09-04 09:12:12581browse
Ethereum price was hovering below the 20, 50 and 200-day EMAs, suggesting that bears are dominant. However, the last couple of weeks saw a range-bound movement in Ethereum.
Ethereum price hovered in a range for the last three weeks as the bulls and bears clashed near the psychological $2500 level. Recently, Ethereum bulls tried to break out of the consolidation above $2800.
The bulls failed, and the price retreated to the $2400 level. At press time, Ethereum trades at around $2519, up nearly 3.93% intraday.
Whales are accumulating at lows as others watch
Despite ETH’s consolidation in the $2500 zone, analysts noticed something else brewing in the background. A significant change in whale holdings over the last couple of weeks while the price has remained largely stagnant.
According to analysts, the top addresses (whales) held around 43.5% of the total supply in mid-August, which has now increased to 44.01%, a 0.051% increase in just two weeks.
A significant increase in whale holdings suggests that whales are accumulating at lows as retail traders panic and sell their holdings.
Moreover, according to data from on-chain analytics platform Santiment, a notable change was observed in the price-DAA divergence indicator. The bearish divergence between the price and DAA (Daily Active Addresses) appeared to be decreasing, indicating a waning interest from sellers.
The price-DAA divergence is an on-chain metric that shows the change in bearish or bullish divergence between an asset’s price and daily active addresses. A decreasing bearish divergence indicates a potential buying interest in Ethereum in the upcoming sessions.
ETH may reclaim $3000 in September: Here's how
Ethereum's price hovered below the 20, 50 and 200-day EMAs, indicating bear dominance. However, the last couple of weeks have seen a range-bound movement in Ethereum.
On the upside, the bears have established themselves strongly around the $2800 level. On the other hand, the bulls have shown dominance around the $2350 level. Now, a clear trend can be observed on the charts if the price breaks on either side.
Furthermore, on-chain metrics have signaled a potential breakout scenario, which could be confirmed if ETH prices close above $2800. In a sustained breakout, Ethereum could regain its presence near the psychological $3000 level in September.
At the time of writing, the RSI line was around 42 points and the 14-day SMA line was at 42.21 points. A bullish crossover between the RSI and SMA lines indicates a potential continuation of the bullish trend.
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