Ethereum Drops 20% In 2 Months: Whales Buy Over 700,000 ETH, What Do They Know?

Ethereum is under pressure, slipping by 20% in two months. The immediate support zone lies between $2,800 and $3,000

Written by: Dalmas Ngetich • Friday, July 26, 2024 • 2 min read

• Last updated: Friday, July 26, 2024

Ethereum is under immense selling pressure, looking at the performance in the daily chart. Two days after the spot Ethereum ETFs went live, bulls are slowing down as the market struggles to soak the oversupply from ETHE outflows. Technically, buyers are upbeat, expecting Ethereum to follow Bitcoin and fly in the coming weeks. The problem is that the reception has been decent but way below what spot Bitcoin ETFs received in the first few trading days.

So far, ETH is dumping. It is down 10% from last week’s highs, and sellers are pressing the gas pedal despite optimism. Presently, Ethereum is up 3% on the last day but down 5% on the previous week. At the same time, the average trading volume, a metric for gauging participation, is down to $21 billion. By all measures, it is high but below average. For buyers to take over there must be rejection of lower lows at the back of rising trading volume.

Ethereum Daily Chart for July 26

As cracks begin to form, traders are watching the following Ethereum news events today:

Amid the discouraging ETH sell-off, it is emerging that whales have been taking advantage of this price decline to buy even more. On July 24, on-chain data reveals that these large entities bought roughly $1 billion worth of ETH, adding to the 400,000 ETH they acquired on July 23.
At the same time, so far this year, the number of active Ethereum and layer-2 addresses increased by over 120%. According to Glassnode, platforms like Arbitrum and Base were among the most active, commanding over 1.8 million addresses.

Ethereum Price Analysis

After surging to nearly $4,000 in late May, Ethereum is fast-dropping, looking at the performance in the daily chart.

At spot rates, ETH is down 20% in roughly two months.

Active traders can look to sell, aligning with the dominant trend.

The immediate target will be $3,000 and $2,800. Any attempt higher but within the July 25 bear bar may offer entries.

However, should there be a total reversal, prices will likely bounce back strongly.

Conservative, risk-on traders can wait for a clean close above $3,500 before committing. In that event, Ethereum could find the momentum to float, rising to as high as $4,000 and $4,100 in a buy trend continuation pattern.