In a tweet yesterday, the cryptocurrency trader and analyst, Ali, noted the strong correlation between the number of whales holding 10,000+ Ethereum (ETH) and the altcoin leader’s price trajectory. In the post, he questioned whether it is the right time to buy or sell ETH given the fact that whales are currently offloading their holdings in the cryptocurrency.
🧵 1/2 #Ethereum | Notice the strong correlation between the number of whales holding 10,000+ $ETH and its price trajectory.
If seasoned investors are offloading, it prompts the question: Is now the right time to buy or to short #ETH? pic.twitter.com/SVF6e6z5fw
— Ali (@ali_charts) August 26, 2023
In a second tweet yesterday, the analyst revealed that he will follow the strategy of ETH whales and short the altcoin. He also added that he will be watching ETH whales closely before he enters into a long position for ETH.
2/2 I’ll be watching these whales closely before I buy $ETH!
Meanwhile, I have opened a short #ETH position with @STFX_IO. If smart money is selling #Ethereum, why shouldn’t I?https://t.co/0cjO30hAXc
— Ali (@ali_charts) August 26, 2023
Meanwhile, at press time, CoinMarketCap indicated that ETH was changing hands at $1,651.01. This was after the cryptocurrency’s price slipped by a slight 0.02% over the past 24 hours. This daily loss added to ETH’s negative weekly performance as well, taking the total weekly price movement down to -0.87%.
Daily chart for ETH/USDT (Source: TradingView)
From a technical perspective, a significant bullish flag was triggered on ETH’s daily chart as the RSI line crossed above the RSI SMA line over the past 24 hours. If this technical flag is validated, then ETH’s price may attempt to flip the resistance level at $1,690 into support within the coming week. Continued buy support may then push ETH’s price to $1,775 as well.
On the other hand, ETH’s price could be at risk of falling to the next key support level at $1,580 if it continues to consolidate below the $1,690 threshold for the next 7 days. This bearish thesis is more likely to play out, however, given the fact that short-term momentum was in favor of sellers at press time.
This was evident in the fact that the 9-day EMA line was positioned below the 20-day EMA line on ETH’s chart. The bearish thesis will be invalidated if ETH’s price is able to close a daily candle above $1,690 within the next 72 hours.
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