ETH Whales That Sold ATH Are Selling Again, What’s Next for Ethereum Price?

Ethereum price today trades at $2,286 after crashing 6% in the past 24 hours. Investors must be cautious as ETH whales that sold during the 2021 bull run and around the all-time high (ATH) are selling again.

Ethereum Price Today Trades at $2,285, Down 6% in 24 Hours

Between September 5 and 6, Ethereum price crashed nearly 13% and trades today around $2,285. In the past 24 hours, ETH shed 6%, in line with Bitcoin’s 4% crash. The bearish outlook in Ether prices can be attributed to the pessimistic crypto market structure and weak macroeconomic outlook. 

ETH Whales Sell, Will Ether price recover?

Data from Santiment shows clear distribution from ETH whales holding 100,000 to 1,000,000 tokens. Whale is a term used in the cryptocurrency ecosystem to identify investors that hold more than $100,000 worth of assets.

This cohort of investors were attuned to ETH price and data shows that they were on the right side of the trend in the 2021 bull run. These whales bought or sold ETH around local tops or bottoms as shown in the below image.

These investors accumulated nearly 2 million ETH between February 2024 and March 2024, showcasing their bias and strong conviction. Days before Ethereum hit an ATH of $4,099, these whales started selling their holdings, leading to a 23% correction in the next week.

In 2021, the Bitcoin hit a ceiling around $69,000, which led to a reversal, pulling Ethereum and other top altcoins down with it. But the situation is different now. Bitcoin has been on a steady descent, but bulls have a chance to attempt a comeback.

So, unless Bitcoin price adds to the selling pressure these whales are unlikely to drag Ether prices lower. 

Ethereum Price Analysis: ETH Plans Recovery Rally

Bitcoin price is showing promising signs of bottom formation and could influence Ethereum recovery rally. The August 5 and September 6 swing lows show a clear bullish divergence when compared to RSI and AO indicators. This technical formation signals a rising bullish momentum that has not yet been reflected in the price. These setups lead to a price breakout to the upside.

In the case of Ethereum price, a bullish divergence-led recovery rally could propel ETH to $2,618, which is the next key resistance level. This move would constitute a 15% rally and is likely where ETH could face a stiff hurdle. 

On the contrary, if the bullish divergence-based Ethereum price forecast fails to unfold, it would signal a lack of buying pressure or an overhead pressure from Bitcoin’s stagnation. Such a move could see ETH price tank and revisit the $2,000 psychological level.