Ethereum Price Hints at Major Reversal as Whales Buy 700,000 ETH Amid Market Drop

The first half of June was particularly bearish for the crypto market, as Bitcoin Price reached a low of $65,000 amid several unfavorable updates. The FUD surrounding macroeconomic development, the capitulation of Bitcoin miners, the Release of ETFs, and the whale distribution have combined to fuel the recent correction in the majority of major cryptocurrencies, including Ether. Ethereum price fell to a three-week low of $3,362 on Friday, but selling pressure eased and was flat over the weekend.

Read also: Crypto Stocks of the Week: Bitcoin and ETH Ride a Roller Coaster, XRP and LUNC Make Waves

Potential SEC ETF Approval, Whale Investments Boost Ethereum Price

Ethereum Price Analysis | Commercial view

During the recent market downturn, Ethereum formed a new high below the resistance level of $3950 on the daily chart. Coin buyers failed to surpass the latest high, indicating an initial shift in market sentiment, where traders prefer to sell on bullish bounces.

On June 14, the coin’s price peaked at $3,887 before experiencing a significant decline of 13.5%, taking it to a low of $3,364. This price level coincides with the 100-day EMA, which has now begun to stabilize Ethereum’s falling price, contributing to its rally to $3,509. At the same time, the market capitalization increased to $431.2 billion.

This push is likely triggered by SEC Chairman Gary Gensler’s recent statement to lawmakers suggesting the agency could finalize approvals for the listing and trading of spot ETH exchange-traded funds (ETFs) within summer.

Additionally, in a recent tweet, popular trader Ali (@ali_charts) highlighted a significant trend in the Ethereum market. According to his analysis, Ethereum whales have made substantial investments over the past three weeks, purchasing over 700,000 ETH, representing approximately $2.45 billion.

This notable accumulation from large holders despite the ongoing correction indicates strong confidence in the Ethereum price rebound.

Read also: Permanent Ethereum Holders Harvest 298,000 ETH in One Day, Will ETH Price Rebound Soon?

If the broader market correction persists, ETH Price could plunge to $3,200 and seek support from the long-term support trendline. According to the previous high, Ethereum coin’s three-time bounce from dynamic support indicates strong accumulation for investors.

That said, the daily chart indicates that a new resistance trendline is forming above, suggesting that Ethereum may be entering a sideways trading pattern. A break above this barrier is necessary for buyers to regain control and support a rally to $3,900.

Technical indicator:

• Exponential Moving Average (EMA): 100-day and 200-day EMAs as dynamic support preventing ETH price from major correction
• MACD: A bearish crossover between the MACD (blue) and signal (orange) indicate that a seller is the main driver of the current price movement.

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