Ethereum “Fake Dip”? ETH Whales Buy Over 200,000 ETH as 34 Million More Coins Locked By Stakers
Ethereum is slipping, breaking below the key support line, which is apparent in the daily chart. Even though the general mood is bullish for ETH, the short-term is unfavorable for optimistic traders. As things stand, the contraction of Bitcoin prices will negatively impact altcoins, and ETH is no exception. Still, in the short-to-medium term, aggressive traders can consider longs. However, if there are losses below immediate support zones by the end of the day, ETH may crumble, aligning with the dump of early August.
Reflecting on the sell-off is how the coin is performing. Ethereum is down 9% on the last day. What’s more? Trading volume is expanding, rising to around $20.5 billion over the last 24 hours.
Traders are closely monitoring the following trending Ethereum news:
- Ethereum prices might be slowing down, but there are now more stakers. Trackers show that a record 34 million ETH has been staked by more than 1.1 million validators. The more coins locked up, the more scarce ETH becomes, which is a net positive for prices.
- Besides staking demand, ETH whales have been accumulating, buying over 200,000 ETH. This is despite sustained outflows from spot ETFs.
Ethereum Price Analysis
ETH/USD is dropping when writing, breaking below the immediate support at around $2,500.
Even so, fundamentals are supportive.
Following the breach of the primary support and the bull flag, traders can consider shorts in the short term.
As prices band along the lower BB, any rise in trading volume could see Ethereum drop toward $2,100 in the short term.
For this reason, day and swing traders may consider shorting, targeting August 2024 lows.
However, if there is rejection today and prices float above $2,500, ETH bulls might build from this low, buying on every pullback.
Ideally, a break above $2,800 will be critical for the uptrend to remain in place.
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