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Ethereum Price Analysis: Whales Book $72M Profits as ETH Hits $2,700

By:
Ibrahim Ajibade
Published: Sep 28, 2024, 06:00 GMT+00:00

Key Points:

  • Ethereum price breached the $2,700 resistance level on Sept 27, up 10% within the weekly timeframe.
  • On-chain data shows that Ethereum whale investors began offloading large amounts of ETH as prices crossed the $2,650 on Sept 26
  • Based on current technical indicators, Ethereum needs to decisively break the $2,755 resistance level to continue its bullish ascent.
Ethereum ETH Price Forecast

In this article:

Ethereum Price Analysis:

Ethereum price breached the $2,700 resistance level on Sept 27, rising 10% this week amid news of CZ’s early release, and fresh US labor market data hinting more rate cuts ahead in Q4.

Can ETH bulls withstand the growing sell-side pressure from whale investors spotted booking early profits?

ETH Breaks $2,700 Barrier after CZ’s Early Release

Ethereum emerged one of the highest-gainers on Friday, as Binance CEO Changpeng Zhao’s early release from prison sparked a wave of positive sentiment across the crypto markets.

On Sept 27, former Binance CEO Changpeng Zhao was released from his prison after serving a 4-month sentence for charges surrounding anti-money laundering and violation of other US financial laws. His release comes 2 days earlier than the scheduled Sept 29 date, due to United States federal guidelines around weekend prison release.

As widely-anticipated, CZ’s early release sparked positive reactions across the crypto markets, especially among top ranked assets. Bitcoin (BTC) led the way breaking past the $66,000 barrier, while Binance’s native BNB coin also hit new monthly peaks above $615.

Notably, Ethereum price also delivered considerable gains within the 24-hour timeframe.

Ethereum Price Analysis: ETH Gains 21% amid CZ's Early Release from Prison, Sept 27, 2024 | TradingView
Ethereum Price Analysis: ETH Gains 21% amid CZ’s Early Release from Prison, Sept 27, 2024 | TradingView

On Friday, Sept 27, Ethereum had opened trading around the $2,631 mark. However, the yellow-patch in the chart above shows how Ethereum price rapidly rose 4% to hit $2,727 within hours after CZ’s release from prison was confirmed.

The rally towards $2,727 marks a new monthly peak for Ethereum price, and its highest in over 30-days dating back to Aug 26.

As the media frenzy cooled, ETH price has now retraced to find support around the $2,690 level at the time of publication.

Ethereum Whales Spotted Booking $72M Profits

When an asset retraces sharply after breaching a critical psychological resistance level as observed within the ETHUSD markets on Sept 27, it often signals the rally may have triggered automated take-profit orders set round that key price range.

According IntoTheBlock’s chart below tracks the real-time changes in balances in wallets that control at least 0.1% of total Ethereum supply in circulation.

Recent trends show that whale investors began offloading large amounts of ETH as prices crossed the $2,650 on Sept 26, which may explain ETH’s sharp correction below $2,700 mark on Friday.

Ethereum Whale Offloaded 26,460 ETH (~$72M) on Sept 26, | Source: IntoTheBlock
Ethereum Whale Offloaded 26,460 ETH (~$72M) on Sept 26, | Source: IntoTheBlock

After a 14-day buying spree, ETH whales recorded negative net-flows on Sept 26. The chart above shows that the sold 26,460 ETH, just as Ethereum prices crossed the $2,650 mark on Thursday.

This alludes to the narrative the early profit-taking among key stakeholders may have contributed to Ethereum’s sharp correction below $2,700 on Friday.  It remains to be seen if bull traders can hold out for another leg-up, as the weekend unfold.

ETH Price Forecast: Rocky Road to $3,000

Ethereum’s bullish rally faces key hurdles after a sharp correction from the $2,727 monthly peak. The attached chart analysis highlights critical technical levels that will shape ETH’s next move, especially as whale activity hints at growing sell-side pressure.

Keltner Channel Suggests Overbought Conditions

The Keltner Channel (KC), which gauges price volatility against a moving average, shows Ethereum nearing the upper boundary at $2,755.73. This marks a pivotal resistance level.

Ethereum Price (ETHUSD) Technical Analysis: Keltner Channel (KC) Indicator, Sept 26 | TradingView
Ethereum Price (ETHUSD) Technical Analysis: Keltner Channel (KC) Indicator, Sept 26 | TradingView

If Ethereum breaks above it, it could trigger a move toward $2,800. However, the current price positioning near the upper KC band suggests overbought conditions, indicating a potential consolidation or retracement. A failure to surpass this level could lead to downward pressure toward $2,529.72.

Advance-Decline Ratio Signals Decreasing Momentum

The Advance-Decline Ratio (ADR), represented as bars in the lower section of the chart, measures the number of advancing assets versus declining ones in the market.

Ethereum Technical Price Analysis: Advance-Decline Ratio (ETHUSD), Sept 27 | TradingView
Ethereum Technical Price Analysis: Advance-Decline Ratio (ETHUSD), Sept 27 | TradingView

With the ADR currently stable at 3.50, this suggests that bullish momentum is waning as Ethereum approaches key resistance.

The flattening of the ADR aligns with the sell-off from whales noted in the prior sections, indicating Ethereum could struggle to break higher in the short term.

ETH Price Forecast: Key Resistance at $2,755 and Support at $2,529

Ethereum needs to decisively break the $2,755 resistance level to continue its bullish ascent. A sustained close above this point would open the path for a move toward $2,800, and possibly higher to $3,000 if the rally intensifies.

On the downside, failure to hold the $2,529 support level would signal a deeper correction, potentially pulling ETH back toward the $2,303.70 mark.

In summary, while Ethereum has shown resilience in recent weeks, it faces a tough road ahead. Whale profit-taking and softening market breadth suggest the rally could stall at current levels unless buyers regain control. A breakout above $2,755 would reignite bullish sentiment, but failing to maintain momentum risks triggering a larger correction.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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