According to crypto analyst John Isige, Ethereum remains within a rectangular pattern after being rejected at $1,400. The analyst says investors will likely take a hands-on approach until the altcoin price explodes. Furthermore, the analyst notes that ETH needs to stay firmly in place to prevent further declines to $1,100 and support $1,300. We have prepared John Isige’s ETH analysis for our readers.
“Ethereum whales spark selling spree”
Koindeks.com As you follow, Ethereum has struggled to retain key reinforcement areas since the Merge update. The bullish trend was also difficult to reverse on the contrary. However, on-chain information from Santiment shows that the whales are busy emptying their wallets.
For example, addresses holding between 1,000 and 10,000 tokens fell from 5,634 to 5,489, as recorded on September 14. A similar bearish trend is also evident amid the 100,000 to 1,000,000 token addresses, which dropped one point from 130 to 129 in a one-to-one cycle.
As long as whales continue to sell, it is possible that rates will continue to play against Ethereum’s recovery. In other words, the altcoin has not touched its last floor price now to ignite a sustainable uptrend in the short term.
“The probability of an altcoin price move north with real value is low”
Crypto analyst Rekt Capital says it pays homage to the $1,300 foothold in the altcoin price. He notes, however, that declining buying interest is unlikely to sponsor a truly valuable move north.
Compared to early 2021, the reflection of the same reinforcement was much more variable. That’s why it created a negative wick. The analyst predicts that if a new weekly candle closes below $1,300, the downside decline will continue to $1,100.
Ethereum (ETH) technical analysis
Ethereum fell from $1,400 in bullish draws on Tuesday. The altcoin is now marginally trading above $1,300. The existence of massive buyer congestion at $1,255 cut the $1,200 retracement short. However, buyer interest has waned. Therefore, a return to $2,000 will likely remain a pipe dream in the near term.
A rectangular pattern on the four-hour chart reveals a volatile market. Ethereum will likely move sideways within the rectangle until a breakout occurs on either side. For now, the Moving Average Convergence Divergence (MACD) in particular is moving below the average line into negative territory. So the odds are in favor of the bears. In addition, the negative divergence from the price also supports this pessimistic analysis.
If the $1,300 reinforcement remains intact, it is possible for Ethereum to start a bullish trend. Still, the 50-day SMA (red) will likely continue to limit price action at $1,323. On the downside, if the bears break the footholds at $1,300 and $1,200 respectively, Ethereum price will raise its claim to $1,100.