Whale buys nearly $13M of Ether, but price needs to reclaim $2.7K for next leg up

Zoltan Vardai12 hours agoWhale buys nearly $13M of Ether, but price needs to reclaim $2.7K for next leg upThe last time this whale address bought the dip was just before Ether rose from $2,100 to $3,100.2877 Total views45 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onWhales, or large Ether-holding entities, continue accumulating as Ether remains stuck under a key psychological resistance line.

A whale has acquired 5,000 Ether (ETH) tokens worth over $12.8 million at its current valuation.

The last time this whale address bought the dip was when Ether fell to the $2,100 mark, shortly before it recovered to $3,100, according to an Aug. 12 X post by Scopescan.Ether whale transactions. Source: Scopescan

Investors often look at whale buying patterns to determine the sentiment around the underlying asset. The last time this whale bought Ether marked the local price bottom just before a strong recovery.

Related:Bitcoin price drops below $59K as institutions stop buying stablecoinsEther needs to surpass $2,700 for more upside — Analyst

Ether staged a significant recovery following the $510 billion crypto market sell-off on Aug. 5 and 6.

Its price rose over 18% during the past week to trade at $2,655 as of 11:08 am UTC, according to CoinMarketCap data.ETH/USDT, 1-day chart. Source: CoinMarketCap

Despite the recovery, Ether needs to decisively reclaim the $2,700 resistance for more upside momentum, according to Aurelie Barthere, principal research analyst at Nansen.

Barthere told Cointelegraph:“There has already been a death cross of ETH (50-day below 200-day). ETH needs to hold above $2,700, or the resistance tested yesterday and in January 2024.”ETH/USD, 1-day chart, key trend lines. Source: Nansen

A “death cross” is a technical chart pattern that reflects short-term price weakness compared to the long-term average moving price of the underlying asset. A death cross can often signal a favorable opportunity to purchase an asset at a discounted price.

Related:Tech giants losing momentum as AI progress disappoints investorsEther ETFs: Net outflow spree continues

Institutional inflows remain disappointing despite the historic launch of the first spot Ether exchange-traded funds (ETFs) in the United States, which debuted for trading on July 23.

The nine US spot Ether ETFs saw $15.8 million worth of cumulative negative outflows on Aug. 9, according to Farside Investors data.Spot Ether ETF flows (US dollars, million). Source: Farside Investors

Since launching, spot Ether ETFs have recorded $406 million worth of cumulative net outflows, partially contributing to Ether’s lagging price action.

ETF inflows can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin (BTC), ETFs accounted for about 75% of new investment in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.

Magazine:Ethereum price will lag for ‘months’ as Bitcoin surges: X Hall of Flame, Roman# Ethereum# Price Analysis# Market Analysis# DeFi# Trading# Ether Price# Ethereum Price# Whale# Ethereum ETF# Bitcoin ETFAdd reaction