Key Points
- Ethereum whales strategically exited their positions before the market crash, potentially intensifying the decline.
- ETH has entered the lower logarithmic regression trendline, a potential buy zone, following the market crash.
In the run-up to the recent market crash, some Ethereum whales made strategic exits. This move possibly intensified the crash’s impact on Ethereum’s price.
A dormant Ethereum whale, after six years, transferred 77,736 ETH, worth $228.6M, to Bitfinex. The same amount was initially withdrawn for just $11.9M in January 2019, when Ethereum was priced at $153 per token.
Whale Movements and Market Impact
In another instance, machibigbrother.eth made a timely deposit of 1,000 ETH worth $2.85M into Binance right before the crash. This was followed by a previous move of 4,413 ETH worth $13.84M to the same exchange.
These actions by whales may have contributed to increased selling pressure, leading to a sharper decline in Ethereum’s price. These activities could suggest cautious trading, with investors looking for similar patterns to predict future market movements.
As the Ethereum price fell, a whale who shorted Ethereum using 50x leverage saw their unrealized profit soar past $30M. This aggressive short position likely intensified the downward pressure on Ethereum’s price.
ETH and the Lower Logarithmic Regression Trendline
The large leveraged trade could have triggered significant liquidations of long positions, driving the price further down. High leverage means even small price movements could lead to substantial market impacts.
Traders should remain vigilant for similar whale maneuvers, as these can foreshadow or even precipitate sharp market corrections.
The price crash led Ethereum into a logarithmic regression pattern. Historically, Ethereum moved above the midline of this channel during peak bull runs. However, recent trends show a decisive shift.
By June 2024, Ethereum approached the lower boundary of this trend, indicating a bearish phase with a gradual descent to a support level near $1,750. The current positioning at approximately $2,526 aligns with historical supports that have previously catalyzed notable rebounds.
If Ethereum maintains stability above this lower boundary, a resurgence towards mid-channel levels around $3,500 could follow. Conversely, failing to hold this line may exacerbate selling pressures, driving prices towards deeper supports at $1,200, reflecting extended market corrections.
The current levels are critical in shaping Ethereum’s medium-term market dynamics.
