Key Takeaways
- Ethereum whales have sold 48,881 ETH worth $219.91 million on Binance, Kraken, and other exchanges.
- Price action suggests that a major ETH rally could occur if it clears the key resistance at the $4,435 level.
- Derivative data indicate that traders are anticipating a short-term correction, as bets on short positions continue to rise.
With the start of October, Ethereum (ETH) has posted a 6.10% gain and continues its upward trend, according to TradingView. Amid these gains, whales found cashing out, as reported by the on-chain analytics platform Lookonchain.
Ethereum Whales Cash Out $220M in ETH Amid Rally
In a post on X, Lookonchain revealed that whale wallet addresses 0xd8d0 and 0x0FeA, along with Trend Research, have sold 48,881 ETH worth $219.91 million. These wallets and the institution sold their ETH on exchanges including Binance, Kraken, and Wintermute to lock in profits.
Price Momentum Remains Strong
Despite the massive sell-off, the ETH price remains unaffected as it continues its upward trajectory. Today, the asset has jumped 1.05% and is currently trading near the $4,385 level.
However, investors and traders appear hesitant to participate, as reflected in the trading volume. CoinMarketCap reveals that ETH’s 24-hour trading volume has dropped by 8% to $43.18 billion.
The whales’ profit-booking and the decline in market participation are now raising concerns about whether ETH will face a correction or if this rally will continue in the coming days.
Ethereum Price Action and Upcoming Levels
According to TimesCrypto technical analysis, ETH has successfully swept the liquidity below the key support at the $4,000 level.
Since then, the asset has continued its upward momentum, facing local resistance at the $4,435 level, which could act as a barrier if selling pressure continues. Meanwhile, key support for ETH appears to be at $4,250, followed by $4,100, in case the price falls.
Based on the current price action, ETH has broken multiple barriers, including $4,100 and $4,250. The upcoming rally, however, will only materialize if the asset breaks the $4,450 level.
If this happens, ETH could see a price jump of 8.50% and may reach the $4,860 level, otherwise, the price could experience some correction before the next upward move.
On the daily chart, the technical indicator Supertrend remains in a red trend and above the ETH price, indicating a downtrend.
Meanwhile, the Average Directional Index (ADX) stands at 20.33, indicating a weak trend, which suggests that momentum is bullish, but a small correction is possible.
Liquidation Levels and Market Sentiment
Given the current market sentiment, it appears that traders are anticipating a correction, as bets on short positions continue to rise.
Derivative data reveals that ETH’s major liquidation levels stand at $4,350 on the lower side and $4,437.4 on the upper side. At these levels, traders are also over-leveraged, having built $341.80 million worth of long positions and $522.28 million worth of short positions, highlighting the bears’ dominance at the moment.
If the sentiment remains unchanged and the price continues to rise, crossing the $4,437.4 level, nearly $522.28 million worth of short positions will be liquidated. Conversely, if sentiment shifts and the price falls below the $4,350 level, approximately $341.80 million worth of long positions will be liquidated.
