Ethereum (ETH) Price Retraces Below Crucial Resistance Level Around $2,675 as Whale Investors Intensify Sell-off

As a seasoned researcher with over a decade of experience in the cryptocurrency market, I’ve seen my fair share of ups and downs. The latest price action of Bitcoin and Ethereum has me intrigued yet cautious. The 3% drop in Ether’s price within 24 hours is a stark reminder of the volatility inherent in this space. However, from a technical perspective, if Ethereum manages to break the resistance at $2,800, we might be looking at a potential rally towards $5k.


In the last 24 hours, Bitcoin‘s price has dipped towards a low of approximately $66,600, whereas Ethereum experienced a decline of over 3%, trading around $2,640 on Tuesday, October 22, during the mid-European session. Both cryptocurrencies displayed volatility with Bitcoin at 2.2% and Ethereum at 3.4%. The market capitalization for Bitcoin stands at $1.32 trillion, while Ethereum’s is at $315.86 billion. In the past 24 hours, the trading volume for Bitcoin was $39.36 billion, and for Ethereum, it was $17.55 billion.

Consequently, the significant altcoin, valued at approximately $317 billion in its fully diluted state and exchanging around $17.2 billion daily, dropped beneath the important resistance barrier.

Looking at the technical perspective, Ether’s price appears to be re-approaching a significant resistance level near $2,800. This resistance is part of a potential upside-down “head and shoulders” (H&S) pattern, which also shows a growing discrepancy in the Daily Relative Strength Index (RSI).

If Ethereum’s value keeps closing above $2,800 in the near future, we can definitively expect a surge towards $5,000. Nevertheless, on a weekly basis, Ethereum’s price hasn’t touched its upward trajectory line again, which could mean more adjustments are likely before the expected dramatic increase.

The upcoming movements in Ethereum’s price are likely to be strongly influenced by Bitcoin’s current surge past $69K. It is worth mentioning that the entire crypto market may soon mirror the trend of the precious metals sector, with gold leading the way as it reaches a fresh record high.

Furthermore, it’s expected that the altcoin boom will commence once the dominance of Bitcoin, on a weekly scale, shows signs of reversing from an upward trend.

In simple terms, the 2024 U.S. elections, happening during a time of significant change in the global economy, could significantly impact the optimistic perspective on cryptocurrencies in the short-term future.

Ethereum Whales Offloads

Over the last week, more than 82,000 Ether units and approximately $220 million were added to the Ether supply held on centralized exchanges. Conversely, during the same timeframe, around 43,501 Bitcoin coins worth over $2 billion were withdrawn from centralized exchange holdings of Bitcoin.

As a researcher delving into the cryptocurrency market, I’ve observed a significant surge in Ethereum’s supply on centralized exchanges, which seems to have dampened its bullish momentum. Specifically, over the past 24 hours, approximately $100 million worth of Ether has been deposited on Coinbase Global Inc (NASDAQ: COIN), a large portion attributed to the influx of US-listed spot Ether Exchange Traded Funds (ETFs).

As per the most recent market statistics, US-listed Ether Exchange Traded Funds (ETFs) experienced a net withdrawal of approximately $20.8 million on Monday.

Significantly, Grayscale’s ETH fund saw the largest withdrawal of approximately $30 million, resulting in over $3 billion being withdrawn from the fund since its approval in July. Conversely, BlackRock’s and VanEck’s ETH funds recorded a net inflow of around $4.86 million and $3.92 million respectively on Monday.

On Monday, Ether ETF providers reported no income generation, implying a weak interest in the leading altcoin on the market. The Ethereum platform has been under significant pressure from emerging blockchains, particularly Solana (SOL), who are making strides, especially in meme coin deployment.

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2024-10-22 13:13