Ethereum (ETH) Whales Buy the Dip Before Fed Rate Cut Announcement, but On-Chain Metrics Remain Bearish

A whale who sold 5690 ETH ($13.1M) at $2304 yesterday has bought back 5660 ETH ($13.1M) at $2316 just now, losing 30.8 ETH ($71.4K) in a single day.

Crypto whales purchased 5,660 ETH worth $13.1 million in the past 24 hours at an average price of $2,316.

ETH’s long/short position currently stands at 0.966, indicating traders are bearish.

Currently, 50.85% of the top ETH traders hold short positions, while 49.15% hold long positions.

Amid this bearish market sentiment, crypto whales are starting to show interest in Ethereum (ETH), the second-largest cryptocurrency by market capitalization. On September 18, 2024, on-chain analytics company Lookonchain published a post on ETH, worth $13.1 million, with an average price of $2,316.

ETH buyback before Fed decision

With this move, the whale lost 30.8 ETH, worth $71,400, in one day. However, this massive Ethereum buyback occurred before the announcement of the Fed rate cut. The whale appears to have anticipated the possible impact of the Fed's decision, which could explain why the purchase was made during the open.

This smart trader with a 100% win rate just completed another trade, but this time he lost! He sold 5,690 ETH ($13.1 million) at a price of $2,304 yesterday and just repurchased 5,660 ETH ($13.1 million) at a price of $2,316, resulting in a loss of 30.8 ETH ($714,000)!

https://t.co/6j9IRgvFNM pic.twitter.com/iPEoF5fY9q

Despite this massive ETH purchase, on-chain indicators are still showing bearish signals. According to on-chain analytics firm Coinglass, ETH’s long/short position currently stands at 0.966, indicating traders are bearish. Additionally, its futures open interest fell 2.5% in the past 24 hours, indicating waning trader interest, possibly due to the bearish market outlook.

When all the data is aggregated, the current sentiment appears to be quite pessimistic, with traders hesitant to enter long or short positions. Currently, 50.85% of the top ETH traders hold short positions, while 49.15% hold long positions. This suggests that long-short positions are currently dominated by bears.

Ethereum Technical Analysis and Upcoming Levels

According to professional technical analysis, ETH is bearish and currently sits at the key support level of $2,230. Additionally, it faces resistance from the descending trendline. Based on historical price momentum, if ETH closes above $2,470, a rise to $2,800 is possible.

Meanwhile, ETH’s Relative Strength Index (RSI) is in oversold territory, indicating a potential price reversal in the coming days.

As of press time, ETH is trading near $2,300, down more than 2.5% in the past 24 hours. Its trading volume increased by 10% during this period, indicating higher trader engagement amid market downturns.

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