Ethereum Price Analysis: ETH Dips By More Than $250 Over The Last Two Days
Daily Ethereum ETH Price Forecast
- Ethereum price flipped the 20-day SMA from support to resistance this Thursday.
- The number of addresses with >10,000 is at its highest point in history.
Ethereum price crashed from $1,375 to $1,100 over the last two days. However, just like Bitcoin, it seems like the whales are continuing to accumulate their tokens.
Ethereum Price Flips 20-day From Support To Resistance
This Thursday, Ethereum Price crashed by around $250 and flipped the 20-day SMA from support to resistance. As a result of this sudden crash, the relative strength index (RSI) dropped from the edge of the overbought zone to 67.
Image: ETH/USD daily
Looking at IntoTheBlock’s IOMAP, we can see that the Ethereum price faces a strong resistance barrier at $1,250, wherein ~223,000 addresses had previously purchased a little over 6.6 million Ether tokens.
The moving average convergence/divergence (MACD) in the 4-hour price chart also shows us that the market momentum is getting increasingly bearish. This could trigger a further crash.
Image: ETH/USD 4-hour
Ethereum Whales Buy The Dip
Santiment, an on-chain analytics platform, shows us that the number of Ethereum whales (addresses with at least 10,000 ETH tokens) is now at its highest in history.
There were 1,211 addresses with 10,000+ $ETH this Saturday, just before Ethereum price reached its all-time level. This number is now up to 1,225.
Fundstrat: Ethereum Price Will Reach $10,500
Despite the current correction, the long-term price potential looks pretty promising. The strategists at Fundstrat Global Advisors believe that Ether (ETH) could surge sevenfold (to $10,500), as per a Bloomberg report.
Strategist David Grider said that one of the main reasons for a possible Ethereum price surge is the Ethereum blockchain's fame for decentralized finance (DeFi) applications. The price predictions are also based on Ethereum’s progress towards a network upgrade (ETH 2.0), which will allow it to process more transactions.
Grider called ETH “the best risk-reward investment play in crypto.” He added that the future of cloud technology might depend on blockchain computing. However, according to him, a few risks include setbacks for the ETH 2.0 network upgrade or an eventual cryptocurrency bear market.
The analysts also pointed out that decentralized finance (DeFi) is convenient because it enables users to borrow or funds without traditional intermediaries like banking institutions.
Ethereum Price Is Expected To Hit These Levels
With the Ethereum price expected to drop more, it may reach the 50-day SMA ($850). For their part, the buyers need to flip the 20-day SMA from resistance to support to continue their upward climb.