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HomeAnalysisEther (ETH) Price Tumbles 15% to $3,363, But Whales and Technical Indicators...

Ether (ETH) Price Tumbles 15% to $3,363, But Whales and Technical Indicators Suggest Upside Potential

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The second-largest cryptocurrency by market capitalization, Ether (ETH), has dropped 15% from its recent high of $4,000 to a low of $3,363 on June 16. Despite the decline, technical and on-chain metrics suggest that ETH may have found support at the $3,500 level, and whales are accumulating the cryptocurrency in anticipation of a future price increase.

According to on-chain data provider CryptoQuant, Ether balances on exchanges have reached a five-year low of 16.7 million ETH, indicating a lack of intention to sell among investors. This is supported by a spike in accumulation by large holders, with wallets holding between 10,000 and 100,000 ETH rising since May 25.

The number of wallets with 10,000-100,000 ETH. Source: Santiment

Popular trader Ali Martinez shared a Santiment chart on June 16, stating that Ethereum whales have bought over 700,000 ETH in the past three weeks, totaling approximately $2.45 billion.

The surge in Ether’s open interest (OI) in futures markets also suggests increased demand for leveraged ETH positions. ETH futures OI broke back above $12 billion on May 21 and has jumped nearly 36% in less than 30 days.

Ether futures aggregate open interest, USD. Source: CoinGlass

The launch of spot Ether ETFs in the United States is expected to drive the price of ETH higher. The SEC approved eight 19b-4 filings to list spot Ether ETFs on various U.S. exchanges on May 23, and market participants are eagerly waiting for the debut, which is expected to begin trading on July 2.

The technical outlook for ETH is also bullish, with a growing bullish divergence between its price and the relative strength index (RSI) in the four-hour time frame. This indicates weakness in the prevailing downtrend, prompting traders to secure discounts at local lows.

Ether’s price dropped between June 10 and June 14, forming lower lows. But in the same period, its daily RSI climbed, forming higher lows.

ETH/USD four-hour chart. Source: TradingView

As the market awaits the launch of spot Ether ETFs, investors are optimistic about the potential upside for ETH. With whales accumulating the cryptocurrency and technical indicators pointing to an upside potential, the price of ETH may be poised for a significant increase in the coming days.

Source: Cointelegraph

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