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- Ethereum’s RSI was in oversold territory, signaling a potential bullish reversal.
- CryptoQuant’s Ethereum exchange’s capital inflow was at its lowest point in the past 30 days – a buy signal.
Ethereum (ETH), the world’s second-largest cryptocurrency, saw a significant price drop following the launch of the ETH spot exchange-traded fund (ETF) in the United States.
Amidst these market downturns, on September 2, two whales found the current price of ETH as an opportunity. They borrowed stablecoins from Aave (AAVE) and purchased 7,767 ETH worth $19.22 million.
Whale activity signals dip buying sentiment
In a post on X (formerly Twitter), Lookonchain noted that whale wallet “0x761d” purchased 3,588 ETH worth $8.8 million, while another address purchased 4,180 ETH worth $10.42 million in the past 24 hours.
This significant accumulation of ETH during the market downturn signals potential buying opportunities.
Ethereum Technical Analysis and Upcoming Levels
According to technical analysis by experts, ETH was in a downtrend as it was trading below the 200 exponential moving average (EMA) on a daily time frame.
Moreover, the recent breakout of the bearish rising wedge price action pattern indicates that ETH could drop to the $2,200 level in the coming days unless it closes a daily candle above the $2,600 level.
Source: TradingView
However, ETH’s technical indicator, the Relative Strength Index (RSI), was in oversold territory, signaling a potential price reversal in the coming days.
On-chain indicators support bullish outlook
On-chain indicators also supported ETH’s bullish outlook. CryptoQuant’s Ethereum exchange inflow was currently at its lowest point in the last 30 days – a buy signal.
A large inflow indicates higher selling pressure in the spot market or vice versa.
Source: CryptoQuant
Meanwhile, CoinGlass’ ETH exchange liquidation chart indicated that bulls were dominating the asset and potentially liquidating short positions.
The main liquidation levels were near the $2,420 level on the lower side and $2,530 on the lower side as traders got overleveraged at these levels.
Source: CoinGlass
If sentiment remains bearish and ETH price falls to the $2,420 level, nearly $230 million of long positions will be liquidated.
Conversely, if sentiment changes and price rises to the $2,430 level, approximately $70 million of short positions will be liquidated.
Read Ethereum (ETH) Price Prediction 2024-2025
At press time, ETH was trading near the $2,510 level, having seen a price increase of over 1.3% over the past 24 hours. At the same time, its open interest has increased, having increased by 1% over the past hour and 1.5% over the past four hours.
This growing open interest signals growing interest from investors and traders amid recent price declines.
