In this bearish market sentiment, crypto whales have begun showing interest in Ethereum (ETH), the second-biggest cryptocurrency by market cap. On September 18, 2024, the on-chain analytics firm Lookonchain made a post on X (Previously Twitter) stating that a whale who sold 5,690 ETH, worth $13.1 million, yesterday has bought back 5,660 ETH worth $13.1 million, at an average price of $2,316.
ETH Buyback Before Fed Decision
By doing so, this whale has lost 30.8 ETH worth $71,400 in a single day. However, this massive Ethereum buyback occurred just before the Fed rate cut announcement. It seems this whale might anticipate the impact of the Fed’s decision, which could explain why the purchase was made during the opening bell of the US stock market.
Bearish On-chain Metrics
Despite this massive ETH purchase, the on-chain metrics are still flashing a bearish signal. According to the on-chain analytics firm Coinglass, ETH’s Long/Short currently stands at 0.966, indicating bearish market sentiment among traders. Additionally, its future open interest has declined by 2.5% in the last 24 hours, suggesting reduced interest from traders, likely due to the bearish market outlook.
While combining all the data it appears that the current sentiment is quite bearish and traders are hesitating to build either long or short positions. Currently, 50.85% of top ETH traders hold short positions, while 49.15% hold long positions. This indicates that bears are currently dominating the asset.
Ethereum Technical Analysis and Upcoming Levels
According to the expert technical analysis, ETH appears bearish and is currently at a crucial support level of $2,230 level. Additionally, it is facing resistance from the descending trendline. Based on the historical price momentum, ETH price could rise to the $2,800 level if it closes its daily candle above the $2,470 level.
Meanwhile, ETH’s Relative Strength Index (RSI) is in oversold territory, suggesting a potential price reversal in the coming days.
At press time, ETH is trading near the $2,300 level and has experienced a price decline of over 2.5% in the last 24 hours. During the same period, its trading volume has increased by 10%, indicating higher participation from traders amid the market downturn.
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