Large Ethereum Holders Purchase $19 Million Worth of ETH

Ethereum, the world’s second-largest cryptocurrency, has faced a notable price decline subsequent to the introduction of the spot ETH Exchange Traded Fund (ETF) in the United States. Despite this market downturn, two whales seized the opportunity on September 2nd when they borrowed stable coins from Aave and acquired 7,767 ETH valued at $19.22 million.

Whale activity, a key indicator of market sentiment, revealed that a whale wallet known as “0x761d” purchased 3,588 ETH worth $8.8 million, while another address bought 4,180 ETH valued at $10.42 million within the last 24 hours. The significant accumulation of ETH during the market downturn suggests potential buying opportunities.

In terms of technical analysis, Ethereum has been in a downtrend as it currently trades below the 200 Exponential Moving Average (EMA) on a daily timeframe. Moreover, the recent breakdown of the bearish rising wedge price action pattern indicates a potential drop to the $2,200 level unless a daily candle closes above $2,600.

Despite these technical indicators, Ethereum’s Relative Strength Index (RSI) was in oversold territory, hinting at a possible price reversal in the near future. On-chain metrics further bolster the bullish outlook for Ethereum, with CryptoQuant reporting that Ethereum exchange inflow hit a 30-day low, suggesting a buy signal. High inflow typically indicates increased selling pressure on the spot exchange.

CoinGlass’s ETH exchange liquidation map also indicated bullish dominance, with major liquidation levels hovering around $2,420 on the lower end and $2,530 on the upper side. Traders at these levels are deemed over-leveraged, potentially leading to liquidations.

Should the bearish sentiment persist and Ethereum’s price drops to $2,420, approximately $230 million worth of long positions could be liquidated. Conversely, a shift in sentiment resulting in a price increase to $2,430 could lead to the liquidation of around $70 million worth of short positions.

At the time of reporting, Ethereum was trading near the $2,510 mark, reflecting a price surge of over 1.3% in the past 24 hours. Additionally, Open Interest in Ethereum has been on the rise, signaling increased interest from investors and traders amid recent price fluctuations.