Ethereum Faces Potential Downturn as Whale Interest Fades and Key Price Levels Emerge

Ethereum encounters significant bearish pressure as dwindling whale participation raises questions about its future price movements.

• ETHs Long/Short Ratio currently sits at 0.95, signaling a bearish outlook among traders.
• A daily close above the $1,840 threshold may shift market sentiment and spark a potential rally.

Ethereum [ETH] has recently displayed signs of losing traction with whale investors, prompting concerns over its price trajectory.

After breaking free from a prolonged descending trendline, ETH initially experienced a surge of over 16%. However, this upward momentum has since stagnated, leading to a consolidation phase that might have dissuaded whale investors.

This trend is underscored by a four-day period of minimal price movement, indicating waning interest among larger stakeholders.

Are whales abandoning Ethereum？

Recent on-chain data from IntoTheBlock reveals a startling 62.42% decrease in whale transactions valued between $1 million and $10 million over the past week.

This sharp decline suggests that institutional players are retreating from the market.

Source: IntoTheBlock

Furthermore, transactions in the $100,000 to $1 million range and those between $10,000 to $100,000 also saw declines of 43.14% and 27.94%, respectively, in the past week.

On-chain analytics indicate that large transaction volumes are down by 51.68%, further reflecting reduced whale engagement in the market.

Taken together, these metrics suggest a bearish trend for Ethereum and could lead to a potential price drop.

Traders bearish view

Currently, ETHs Long/Short Ratio is at 0.95. Approximately 51.17% of top ETH traders are adopting short positions, while 48.83% remain in long positions, based on data from Coinglass.

Source: Coinglass

This prevailing sentiment suggests that not only whales but also retail traders are leaning towards a bearish outlook, anticipating potential price declines.

As of now, ETH is priced at approximately $1,805, experiencing a slight 0.55% decrease over the last 24 hours.

The trading volume has also dropped by 40% during this timeframe, indicating lower participation from both traders and investors compared to the previous day.

Ethereums price action and key levels

According to COINOTAGs technical analysis, Ethereum is at a critical juncture as it enters a narrow range within an ascending triangle pattern on the four-hour time frame.

Source: TradingView

Historically, a breakdown from this pattern could result in a steep decline, potentially leading to a drop of over 7% to revisit the horizontal support level around $1,690.

Conversely, a breakout is possible if ETH exceeds the neckline of the ascending triangle, closing a four-hour candle above $1,840. Such a breakthrough could initiate a significant upward trend.

Despite the current challenges, ETH maintains its position above the 200 Exponential Moving Average (EMA) on the four-hour chart, indicating that the asset is still in an upward trajectory.