- Ethereum price is testing a major accumulation zone at $2,098, with RSI nearing oversold territory (33.54).
- Large investors have ramped up ETH accumulation, increasing inflows to a staggering 445,260 ETH in the last 24 hours.
- Short positions keep ETH prices down, with open interest rising 2.65%.
Ethereum price shows no signs of a significant price breakout despite on-chain data revealing a strong investor re-accumulation. Ethereum exchanged hands at $2,098 during the pre-market New York trading session, a 10.5% drop in the last 24 hours. Historically, periods of heavy ETH accumulation have preceded significant price rallies; could this be the setup for a 70% surge?
Ethereum Price Eyes a Comeback as Whale Activity Ramps Up
Data from IntoTheBlock shows that large investors increased their activity significantly over the last 3 days as Ethereum price slipped back to the lower end of its 13-month re-accumulation range. Large transactions increased from 6,500 to over 14,800 since February 23 as the ETH price slipped lower, indicating that whales were offloading their bags.
However, in the last 24 hours, the tides have changed as large holder inflow increased from 54,000 to 445,240 ETH while the price of Ethereum dropped from $2,361 to $2,098 in the same duration.
This suggests that large investors have begun re-accumulating ETH at these levels. ETH price prediction shows the last time this happened, ETH soared 85% to the top of the 13-month range.
Futures Traders Are Keeping ETH Price Down
Although whales have spotted an opportunity to buy in at low prices before a potential bounce, futures traders have been shorting Ethereum price. Data from Coinglass shows traders have been opening shorts on ETH for the past 24 hours, which explains why the price is down 10.5%.
Ethereum open interest (OI) is also up 2.65%, meaning ETH will likely continue bleeding before a bounce happens.
Moreover, whale order analysis on Coinglass shows large investors have huge buy limit orders set lower near $1,900, collectively exceeding $3.6 million (on Binance).
History shows intelligent whales have always had the upper hand as they understand how market makers work and have the liquidity to move markets in their favour. While ETH price may drop to $1,900 lows in the short term, the current re-accumulation will likely trigger an ETH rally back to the top of the range around $4,100.
Ethereum Price Analysis: ETH Eyes 115% Rally If $1,900 Support Holds
Price action for the ETH/USD pair indicates that the asset is on a downward trend, experiencing a significant decline from its recent highs. However, ETH is at a major accumulation zone, hinting at potential price stabilization or reversal.
The latest daily candlestick shows selling pressure as the price got rejected at the Bollinger Band’s middle band (blue), indicating that supply is strong at these levels. The price trades below the 200-day simple moving average (SMA), signaling a bearish phase, but a reversal may be forming.
The Relative Strength Index (RSI) at 33.54 reveals it is close to oversold levels, which often signals a potential buying opportunity. Additionally, the moving average convergence/divergence (MACD) indicator is bearish but flattening, suggesting that downward momentum is weakening, and a potential reversal could occur.
The key support zone for the Ethereum price is around the psychological level of $2,000, which also happens to be around the accumulation zone. Historically, accumulation zones have led to strong bullish breakouts, as this is where buyers start stepping in.
If the bounce happens, it may signal a market strength and lead to ETH price surging back to $4,105 with a short stop at $2,952 for a 115% gain. Volume confirmation is needed in the event of a bounce to sustain the upward move.
