Ethereum Whale Buys 50,020 ETH, Signals Potential Rally
Key Takeaways
- An Ethereum whale purchased 50,020 ETH worth $132 million USD from Kraken.
- The purchase followed a breakout above the $2,570 USD mark, suggesting a potential rally.
- Ethereum’s long/short ratio stands at 2.023, indicating strong bullish sentiment among traders.
- ETH could rise to $2,900 USD if it holds above the $2,570 USD resistance level.
Ethereum Whale Makes a Massive Purchase
On September 24, on-chain analytics firm “TheDataNerd” reported on X (formerly Twitter) that a wallet with the address “0xBCFB” purchased a significant amount of 50,020 ETH worth $132 million USD from the crypto exchange Kraken. This purchase occurred after Ethereum (ETH) broke through the consolidation phase of the last two days and rose above the crucial $2,570 USD mark.
Some whales view the current price as an opportunity and continue to accumulate, while others are offloading their holdings, expecting a price decline.
Key Price Levels to Watch
According to technical analysis, Ethereum remains in a bullish phase despite trading below the 200-day Exponential Moving Average (EMA). The 200 EMA is a technical indicator used to determine whether an asset is in an uptrend or downtrend.
The breakout above the $2,570 USD resistance level and subsequent consolidation suggest a potential continuation of the rally. If ETH continues to hold above this level, there is a realistic chance that the price could rise to $2,900 USD. With sustained positive market sentiment, the price could climb even higher.
Positive On-Chain Data Supports Bullish Sentiment
The optimistic market outlook is further supported by on-chain data. According to Coinglass, Ethereum’s long/short ratio stands at 2.023, indicating extremely bullish sentiment among traders. Additionally, ETH futures’ open interest has increased by 3.2% over the last 24 hours. Open interest refers to the number of open positions in futures contracts and can serve as an indicator of market participants’ interest.
Traders often use the combination of rising open interest and a long/short ratio above 1 to build long positions. Currently, 66.93% of top traders hold long positions, while 33.07% are betting on a price decline. This suggests that the bulls currently have the upper hand.
Current Status and Trading Volume
At the time of writing, Ethereum is trading at around $2,640 USD and has remained stable over the past 24 hours. Trading volume has decreased by 7% during this period, indicating lower trader activity.
Our Take
The massive purchase by an Ethereum whale and the positive on-chain data suggest a bullish future for ETH. As long as the price remains above the $2,570 USD mark, a rise to $2,900 USD could be realistic. However, the lower trading volume should not be overlooked, as it may indicate potential short-term uncertainty in the market.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
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