Ethereum Faces Potential Correction as Crypto Whale Sells 15,000 ETH: Will Prices Dip to $2K or Rally to $3K?

ethereum‘s market dynamics have recently taken a bearish turn, with the cryptocurrency’s price experiencing a 1.65% drop during the Sunday trading session, landing at $2,570. This decline has brought Ethereum’s market capitalization down to approximately $310.7 billion. Market analysts view this development as a temporary setback, a breather for the bullish momentum to gather strength again. However, the recent activity of a prominent crypto whale has raised concerns about a potential further dip in Ethereum’s value, leading to speculation on whether prices might fall to the $2,000 mark or if a rebound is in sight.

The focus of the market’s attention has been a transaction traced back to a so-called “diamond-hand whale,” identified by the pseudonym “0x682,” who moved a substantial sum of 15,000 eth, valued at nearly $39.6 million, to the Kraken exchange. This is not the first instance of significant market activity by this investor; previous transactions have been closely followed by notable drops in Ethereum’s price. For instance, a disposal of 10,000 ETH in late July preceded a 7.8% price reduction, and a similar pattern was observed in August when 15,000 ETH were exchanged just before a 2.7% fall in value.

Currently, the holdings of this investor are estimated at 26,639 ETH, roughly equating to $70.4 million, with profits believed to be around $133 million, marking an 87% increase. The pattern of selling observed with this whale suggests a possible strategy that could influence Ethereum’s price to retest the $2,000 support level.

Moreover, according to data from Santiment, the supply of Ethereum on exchanges has seen an uptick, reaching 21.65 million ETH. This increase in available supply on trading platforms traditionally signifies a heightened risk of sell-offs, potentially exerting downward pressure on prices.

Despite the bearish sentiment, Ethereum has shown signs of resilience and recovery from a low of $2,150 to $2,564 over the past fortnight, registering a 19.5% growth. This recovery is largely attributed to the ripple effects of a significant interest rate cut by the U.S. Federal Reserve and a concurrent surge in bitcoin‘s price above $60,500. The daily time frame for Ethereum reveals a potential double-bottom reversal pattern, indicating a possible 9% increase in value if the momentum sustains. Should this pattern hold, Ethereum could test the $2,800 resistance level, backed by the 100-day moving average. A successful breach of this barrier could catapult Ethereum’s price above $3,000, aiming for the $3,500 mark.

However, if Ethereum fails to break through the $2,800 resistance due to persistent overhead supply, we might witness a retraction to the $2,000 support level, leading to a period of consolidation. This pivotal moment for Ethereum presents a dichotomy of potential outcomes: a descent to the $2,000 level driven by selling pressures, particularly from notable whale activities, or an ascent to $3,000, contingent on breaching the critical $2,800 resistance.

As the cryptocurrency market continues to evolve, Ethereum’s trajectory by the end of September remains a focal point of speculation. Investors and market watchers alike are closely monitoring these developments, understanding that in the volatile world of cryptocurrencies, patterns of the past may offer insights, but the future remains fundamentally uncertain.