Ethereum Price Analysis As Massive ETH Transfers Hint At Another Crash


Ethereum price revealed mixed technical and fundamental signals as the week began, reflecting intense volatility that affected Bitcoin and most altcoins during the weekend. A spike in transfers to exchanges could augment the downtrend before Ether regains momentum to tackle higher resistance levels.

Ethereum Whales Prepare To Sell

Ethereum price reversed from $2,500 support on Sunday, aiming for a major breakout above $3,000. However, increasing whale transfers to exchanges have raised concerns over the asset’s future performance.

Blockchain data shared by on-chain analysis company Lookonchain on X highlighted that a whale who participated in the protocol’s initial coin offering (ICO) in 2014 moved 5,000 ETH, worth $13.2 million at the current exchange rate of $2,675 to OKX exchange on Monday.

So far, this whale has transferred 48,500 ETH worth $154 million to the same OKX exchange at an average price of $3,176 in the last 35 days.

A whale who received 1M $ETH in #Ethereum ICO at a price of $0.31 deposited 5,000 $ETH($13.2M) to #OKX again 12 hours ago.

This whale has deposited 48,500 $ETH($154M) to #OKX at an average price of $3,176 in the past month.https://t.co/4AN8voWrFEhttps://t.co/u1zjZ01Ez4 pic.twitter.com/ZDsFCcFiTk

— Lookonchain (@lookonchain) August 12, 2024

Lookonchain reported another transfer by Beaverbuild, a block builder who moved 5,550 ETH worth $14.95 million to Binance late on Monday. In the last year, Beaverbuild has deposited 14,657 ETH worth $39.83 million to both Binance and OKX.

beaverbuild deposited 5,550 $ETH($14.95ZM) to Binance 2 hours ago.#beaverbuild is a block builder and has deposited 14,657 $ETH($39.83M) to #Binance and #OKX in the past year.https://t.co/bS4TM168fX pic.twitter.com/WU904NHrPd

— Lookonchain (@lookonchain) August 12, 2024

It is not common for early adopters to move Ethereum to exchanges. Nevertheless, such transfers could imply that holders of the tokens are getting ready to sell, stake, or possibly diversify their portfolios to include other tokens.

Ethereum Price Analysis: ETH Losing Upward Momentum

Ethereum’s price hovered at $2,656 after it was rejected from $2,700 resistance, which coincided with the 78.6% Fibonacci level. The 50-day Exponential Moving Average (EMA) crossover with the 200-day EMA means a death cross is coming into the picture.

The previous Ethereum price prediction points to potential bearishness following the appearance of a death cross. Traders may use this as a sell signal or tighten stop-loss orders, but confirmation with other indicators is crucial.

For instance, the Moving Average Convergence Divergence (MACD) is stuck in the negative region, flaunting a sell signal and encouraging traders to consider ETH shorts.

Sliding below $2,500 short-term support may worsen the impact of the death cross, triggering a sell-off toward $2,000. Last week, ETH price tested $2,100 support, suggesting that further decline below $2,000 cannot be ruled out.

ETH price chart | Tradingview

The IOMAP model shows that while Ethereum price is not strongly supported above $2,500, it has a clear rebound path toward $3,000. Therefore, breaching the immediate $2,700 hurdle could ignite rapid price movement, which could see ETH start a new bullish phase and advance to $4,000.

Ethereum IOMAP model | IntoTheBlock

Based on the IOMAP model by IntoTheBlock, the largest cohort of 2.12 million addresses purchased 50.18 million ETH between $2,273 and $2,354. These holders are in profit and are unlikely to sell, which may, in turn, boost recovery in the coming weeks.

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