ETH Struggles Under $2000 As Ethereum Whales At War Among Themselves

On Tuesday, June 22, the world’s second-largest cryptocurrency registered over a 10% price dip going all the way close to $1700 levels and falling below crucial support levels. Although the overall crypto market has recovered from the lows, ETH still continues to trade under $2000 levels which have now become its next resistance.

The Ethereum (ETH) price is now 60% from its all-time high of $4400 in the last month of May 2021. However, it is interesting to the ETH whale behavior at this stage. As per the data by on-chain provider Santiment, the ETH exchange whales are at a war with the non-exchange whales.

The ETH holdings in the exchange wallets have been shrinking fast. On the other hand, the ETH holdings in the non-exchange wallets are at record high levels as of now. It’s a classic battle that’s brewing up between the exchange and the non-exchange whales as of now.

Moreover, another interesting data point shows that Tuesday’s solid price correction comes as the ETH whale behavior has been offsetting its price behavior over the last month. As per on-chain data, ETH whale wallets holding anywhere between 10K-100K coins have been tracking the ETH price for the last three months until last month’s offset.

Fun fact: ETH held by 10K – 100K wallets tracks the price most of the time for the last three years.

Last month the price underperforms it, though. pic.twitter.com/eBrRKFvf8m

— Lex Moskovski (@mskvsk) June 20, 2021

Ethereum’s Analysts Bullish on ETH Chart Patterns

Although Ethereum has been trading sideways for a while now, some chart indicators show that Ethereum is having a strong support formation. Speaking to CNBC, Blue Line Capital founder and President Bill Baruch said that Ethereum’s technical charts show a spinning top-pattern formation. This pattern usually occurs after a major downtrend and signals bullish moves coming ahead. Baruch said:

“Today, I bought ethereum. Ethereum is testing into a big level of support. What you’re seeing is a spinning-top bottom that’s created right now … which could lead to a bullish turnaround.”

Yesterday’s ETH price correction comes amid a massive drop in on-chain activity. The ETH address activity has dropped 30% over the last month and the ETH network USD settlement has tanked by 68%.