Altcoin Known to Sell by Whales Hits the Brakes! What’s Next?

The price of the leading altcoin Ethereum has started to decline again after rising by as much as 8 percent in the past day. The second largest cryptocurrency is eyeing to disperse a strong supply area at $1,350. According to analyst John Isige, this could be the start of a move that could push the coin to $1,496. Here are the details…

Altcoin price approaches bullish trend

The largest altcoin tested the foothold at $1,230 for the second time since Sept. 22. Subsequently, a dual-base model appeared on the four-hour chart. According to the analyst, this bullish pattern often leads to a reversal of the trend. This gives traders the opportunity to take long positions on the ETH price. A double bottom pattern is formed after a long downtrend characterized by two “pits”. As the price bounces off the second trough, a bullish breakout occurs in Ethereum price. Through the confirmation of this ascension, the process turns on the contrary.

An increase in volume is required to detect the feasibility of an uptrend. However, traders should be patient until Ethereum price rises above the neckline resistance before activating buy orders. Ethereum is looking at $1,496, an 11.77 percent move from the $1,350 breakout point. In the chart below shared by the analyst, the 50-day SMA (Simple Moving Average) is shown in red. The 100-day SMA in blue also draws attention on the chart. These two averages give the Ethereum price a boost at $1,313 and $1,320, respectively.

The MACD (Moving Average Convergence/Divergence) indicator above the average line reveals an increasing bullish influence on Ethereum price. However, for a successful attack at $1,350 in the supply area, there must be strong demand behind ETH. According to the analyst, as long as the MACD maintains a positive deviation from the moving average, the path of least resistance will remain on the upper side.

Ethereum whales hit the brakes

Meanwhile, ten chain data from Glassnode draws attention to big investors. According to the data, it would be a critical development for investors holding 1,000 or more tokens to stop selling. Should these investors double down on their efforts to fill their bags, a positive picture could be observed for Ethereum price soon. The chart below shows 6,313 addresses in this cluster with over 1,000 ETH as of September 15.

According to the analyst, if the blue line on the top chart goes up, Ethereum price can breathe. It can then chart a recovery path. Still, it remains critical that whales escape skepticism. The whales’ lack of skepticism could push ETH to $1,496 or even $2,000, according to the analyst. “In other words, the previously dominant selling spree must stop for ETH price to climb the ladder,” the analyst says. Koindeks.comAs we have also reported, ETH has experienced a 3 percent decrease in the last 24 hours.

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