Ethereum Whales Prepare to Sell as ETH Loses Upward Momentum

Ethereum price revealed mixed technical and fundamental signals as the week began, reflecting intense volatility that affected Bitcoin and most altcoins

Ethereum price showed mixed technical and fundamental signals as the week began, reflecting the intense volatility that affected Bitcoin and most altcoins during the weekend. A spike in transfers to exchanges could augment the downtrend before Ether regains momentum to tackle higher resistance levels.

Ethereum price reversed from the $2,500 support on Sunday, aiming for a major breakout above $3,000. However, increasing whale transfers to exchanges have raised concerns over the asset's future performance.

On-chain data shared by blockchain analysis company Lookonchain highlighted that a whale who participated in the protocol's initial coin offering (ICO) in 2014 moved 5,000 ETH, valued at $13.2 million at the current exchange rate of $2,675, to OKX exchange on Monday.

A whale who received 1M $ETH in #Ethereum ICO at a price of $0.31 deposited 5,000 $ETH($13.2M) to #OKX again 12 hours ago.

This whale has deposited 48,500 $ETH($154M) to #OKX at an average price of $3,176 in the last 35 days.https://t.co/4AN8voWrFEhttps://t.co/u1zjZ01Ez4 pic.twitter.com/ZDsFCcFiTk

— Lookonchain (@lookonchain) August 12, 2024

Another transfer was reported by Lookonchain, as Beaverbuild, a block builder, moved 5,550 ETH, valued at $14.95 million, to Binance late on Monday. In the last year, Beaverbuild has deposited 14,657 ETH, worth $39.83 million, to both Binance and OKX.

beaverbuild deposited 5,550 $ETH($14.95ZM) to Binance 2 hours ago.#beaverbuild is a block builder and has deposited 14,657 $ETH($39.83M) to #Binance and #OKX in the past year.https://t.co/bS4TM168fX pic.twitter.com/WU904NHrPd

— Lookonchain (@lookonchain) August 12, 2024

While early adopters moving Ethereum to exchanges is not a common occurrence, such transfers could imply that the holders of the tokens are getting ready to sell, stake or possibly diversify their portfolios to include other tokens.

As analyzed previously, the rising selling pressure on ETH price could be a response to the recent rally that pushed the world's second-largest cryptocurrency to levels not seen since mid-2022. Moreover, traders might be aiming to secure profits or adjust their positions ahead of the upcoming Merge.

On the other hand, the sell-off among early movers might also be influenced by the recent bullish performance of other tokens, such as Lido Staked Ether (stETH), which could be attracting some attention from traders.

Ethereum Price Analysis: ETH Losing Upward Momentum

The price of Ethereum hovered at $2,656 after it was rejected from the $2,700 resistance, which coincided with the 78.6% Fibonacci level. The 50-day Exponential Moving Average (EMA) crossover with the 200-day EMA is forming a death cross.

The previous Ethereum price prediction pointed to potential bearishness following the appearance of a death cross.斯克鲁鲁斯网络 (SKS) 价格预测：即将出现看涨趋势逆转？

Traders may use this as a sell signal or tighten stop-loss orders, but confirmation with other indicators is crucial. For instance, the Moving Average Convergence Divergence (MACD) is stuck in the negative region, flaunting a sell signal and encouraging traders to consider ETH shorts.

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