Ethereum whales buying the dip but ETH struggling to remain above $1k

NEW DELHI (CoinChapter.com) — Ethereum (ETH) sharks and whales (addresses that hold between 100 and 100,000 ETH) are buying the dip, as per data from Santiment, a crypto-financial market data platform.

Ether prices have fallen nearly 80% from their ATH ($4,936) in the aftermath of Terra’s collapse. Moreover, Three Arrows Capital’s insolvency issues and FUD over the Celsius fiasco added to the bearish headwinds against the prime altcoin.

However, it seems some of the richest ETH investors have taken the opportunity to buy the dip. Santiment noted Ethereum sharks and whales had added 1.1% of the ETH supply to their coffers since Jun 7.

Additionally, the crypto data platform highlighted that historically, the 100-100,000 ETH holding addresses have had an “alpha on future price movement.”

Ethereum Delays Its Difficulty Bomb, Investors Divided On Merge

Meanwhile, Ethereum delayed the deployment of Ethereum’s “difficulty bomb” by 100 days. Developers successfully launched the Gray Glacier hard fork, which implemented the Ethereum Improvement Proposal (EIP) 5133. at block height 15,050,000.

Also Read: Ethereum likely to see more bearish times ahead- analysts

Ethereum bulls are hoping the Merge would help Ether prices break out of their downtrend. Frank Corva, a senior analyst at Finder, told CoinChapter that the Merge would only be a catalyst for ETH prices if it makes “the Ethereum blockchain quicker and cheaper to use.“

Corva also stated he believed the current market scenario should not be called ‘crypto winter.‘

“The crypto winter of 2018-2019 was much longer than the crypto bear market that we are currently experiencing. Plus, almost all markets have been in a downtrend since November 2021, not just crypto.“

Frank Corva said

However, Dion Guillaume, Gate.io’s global head of PR & communication, stated that the Terra-3AC-Celsius contagion has severely damaged Ethereum’s DeFi ecosystem. He also stated that depreciating DeFi TVL could have “negative ramifications on Ethereum’s price.”

Guillaume predicted ETH prices might fall below $900 in the short term.

The upcoming Merge could stem this potential negative collapse, but I don’t see a bull run happening until the external macros stabilize and the contagion slows down.

Dion Guillaume told Coinchapter

Ether prices continued to creep towards $1,000 after charting their fifth straight red candle, as ETH fell more than 22% between Jun 26’s high ($1,283) and Jun 30’s low ($997). On Jun 30, ETH prices fell nearly 10% between the day’s high ($1,105) and low ($997) levels.

Ether’s RSI Bordering At Oversold Region

Ether’s recent downtrend caused its relative strength index to move close to entering oversold regions. The RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. When the RSI goes below 30, the asset enters the oversold region.

An oversold RSI indicates a bullish trend reversal is on the cards. If traders start a buying spree, ETH prices would first have to conquer resistance near $1,100.

Also Read: Ethereum sees ‘bear pennant’ crash ahead — ETH could fall below $500.

A move above immediate resistance might see Ether prices rise 22.5% to challenge resistance from its 20-day exponential moving average (20-day EMA, red wave) near $1,250 before corrections pare prices.

Conversely, if the prime altcoin’s prices continue falling, ETH could reach support near $950. A marketwide sell-off could see ETH prices fall 16.5% to test support near $851 before recovering.

At writing, ETH was trading at $1,017, down 7.37% on the day.