Ethereum Price Suggests Major Reversal as Whales Buy 700,000 ETH Amid Market Crash

The first half of June was notably low for the crypto market as Bitcoin Price reached a low of $65,000 amid several unfavorable updates. The FUD surrounding macroeconomic development, the capitulation of Bitcoin miners, the Exit from ETFs, and whale distribution combined to fuel the recent correction in most major cryptocurrencies, including Ether. Ethereum price fell to a three-week low of $3,362 on Friday but has now witnessed an ease in selling pressure and flat over the weekend.

Read too: Crypto Headlines of the Week: Bitcoin and ETH Ride Rollercoaster, XRP and LUNC Make Waves

Potential SEC ETF Approval and Whale Investments Boost Ethereum Price

Ethereum Price Analysis | Trading view

During the recent market downturn, Ethereum formed a new lower high at the $3,950 resistance level on the daily chart. Currency buyers have failed to break through the latest rally, indicating an initial shift in market sentiment where traders prefer to sell on bullish recoveries.

On June 14, the coin’s price reached a peak of $3,887 before suffering a significant drop of 13.5%, falling to a low of $3,364. This price level coincides with the 100-day EMA, which has now started to stabilize Ethereum’s falling price, aiding its recovery to $3,509. At the same time, the market capitalization increased to $431.2 billion.

This surge is likely triggered by SEC Chairman Gary Gensler’s recent statement to lawmakers suggesting that the agency could finalize approvals for listing and trading of spot ETH exchange-traded funds (ETFs) over the summer.

Furthermore, in a recent tweet, renowned trader Ali (@ali_charts) highlighted a significant trend in the Ethereum market. According to his analysis, Ethereum whales have made substantial investments over the past three weeks, purchasing more than 700,000 ETH, which is equivalent to approximately $2.45 billion.

This notable accumulation by large holders despite the ongoing correction indicates strong confidence in the Ethereum price recovery.

Read too: Ethereum Permanent Holders Earn 298K ETH in One Day, ETH Price Rise Soon?

If the broader market correction persists, the Ethereum Price it could dip towards $3,200 and seek support at the long-standing support trendline. According to previous records, Ethereum coin’s three-fold recovery from dynamic support indicates high accumulation for investors.

That said, the daily chart indicates a new resistance trendline forming above, suggesting that Ethereum may enter a sideways trading pattern. A break above this barrier is necessary for buyers to regain control and reinforce a rally to $3,900.

Technical Indicator:

• Exponential Moving Average (EMA): The 100-day and 200-day EMAs as dynamic support preventing ETH price from a major correction
• MACD: A bearish crossover between MACD (blue) and signal (orange) indicate a seller as the main driving force behind the current price movement.

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