- Ethereum price is holding firm to support at $1,250.
- Ethereum whales are not slowing down their selling frenzy nearly three weeks after the merger.
- A sustained break above the falling channel boundary line could help improve investor sentiment for a move to $2,000.
Ethereum price may have slowed its downward trend, but it still wallows deep in troubled waters. With robust support between $1,200 and $1,300 in place, the largest smart contracts token is focused on closing the day above $1,400. However, the bulls still have a long way to go, especially as they fight off seller congestion at $1,350.
Are Whale Selling Activities Preventing Ethereum Price From Rallying?
Ethereum price started losing ground days before its software upgrade event called the merger. On-chain data from Glassnode shows that large investors have been a major contributor to the selling pressure.
The number of addresses with 1,000 ETH and above had fallen to 6,356 on September 22, several days after peaking at 6,516. Additionally, the table below explains that these whale addresses have yet to stop empty. Currently, there are 6,329 addresses in this cohort.
Number of Ethereum addresses with balance ≥ 1k
Although Ethereum price confirms support between $1,200 and $1,300, it has not made significant headway on the upside. Pressure from the whale addresses above may prevent ETH from advancing north to $2,000.
On the flip side, the bulls are generally in check but lack the momentum to sustain the move above the lower channel boundary resistance at $1,350. A closer look at the MACD (Moving Average Convergence Divergence) indicates an incoming buy signal.
Buyers should wait for the 12-day EMA (exponential moving average – red) to cross above the 26-day EMA (blue) before confirming buy orders. The movement of the MACD above the middle line (0.00) could validate the bullish trend of the Ethereum price.
ETH/USD daily chart
OBV (On Balance Volume) is another crucial tool that traders can use to confirm whether the market has the potential to continue rising. It uses the volume flow to predict the movement of asset prices. As volume increases, the OBV “as a tightly coiled spring” may indicate an incoming breakout.
For now, a break above the channel’s boundary line could pave the way for a further move to $1,400. From there, the Ethereum price would be in a better position to move up to $2,000. Remember that as the price rises, speculation will likely increase across the board – with more buyers betting on a sustained breakout.