Johannesburg, South Africa – The Ethereum price trajectory has seen a challenge in breaking out for nearly two months. Yet, this has not dampened the spirits of investors, especially the heavyweight backers in the crypto community, who seem more bullish now than ever.
Ethereum’s Price Movement: What’s Holding It Back?
Recently, Ethereum, trading at $1,568 (ZAR 29,412.48), witnessed a minor uplift from its support line positioned at $1,533 (ZAR 28,748.08). Despite this positive move, the cryptocurrency struggled to overcome the barrier set by the 50-day Exponential Moving Average (EMA). Successfully crossing this would have meant Ethereum coming within grasp of transforming the resistance at $1,686 (ZAR 31,637.76) into a foundational support level.
While the current scenario appears a tad bearish, insights from the Relative Strength Index (RSI) paint a silver lining. The RSI, currently settled around the neutral 50.0 mark, hints that an upswing could convert this line into a bulwark of support, signalling a possible bullish turn. However, any inability to affirm this bullish sentiment and a breach of the $1,533 support could see Ethereum slipping under the $1,500 (ZAR 28,140) bracket.
The Role of Ethereum Whales in the Price Dynamic
While there are legitimate concerns about Ethereum’s price dipping, the stance and strategy adopted by mega-investors, often referred to as ‘whales’, might prove to be a safeguard against a downturn. Ethereum, although not typically known for its whale-driven nature, undeniably feels the influence of these major stakeholders on its valuation.
Data gathered by Santiment reveals that addresses boasting holdings exceeding 1 million ETH have been on an accumulation spree. These addresses are currently clutching a whopping 32.3% of Ethereum’s entire circulating tokens. Such a concentration is unparalleled and hasn’t been observed since July 2016 – a record spanning seven years.
For South African investors, a noteworthy element here is the deliberate strategy employed by these whales. Data indicates that the accumulation efforts heightened precisely when Ethereum’s price experienced a slump in mid-August. From that point on, the aggregated holdings by these whales surged by an impressive 1.5% and show no signs of ceasing. Such strategic accumulation by influential investors is anticipated to provide the necessary bullish thrust Ethereum requires, potentially elevating the crypto beyond the $1,600 (ZAR 30,016) mark.