Ethereum (ETH) on the rise: are the whales about to sell?

Pause coming for Ethereum and altcoins?- 2023 is proving to be an interesting year for risky assets, such as cryptocurrencies. After a catastrophic 2022, theyear 2023 might allows to find colors. However, after a few weeks in the green, Ethereum finds itself close to significant resistance. Is it time for Ethereum and altcoins to take a break? Are whales taking profits on ETH? Let’s take a closer look!

The whales sell Ethereum?

It is interesting to look at the movement of large portfolios. Indeed, it is these entities that make the rain and the good weather on the financial markets. As a reminder, the whales are entities having more than 1,000 BTC in portfolio. Here, we will look at the behavior of entities having more than 10,000 ETH in portfolio.

Addresses with over 10,000 ETH in wallet Source: Glassnode

The whales had purchased the asset in November 2022 when it traded around $1,250. It was an interesting time to buy. The price could rebound at the support level. Few weeks later, the price rebounded more than 30 %. Now we see that whales take profit. This is an interesting time to take profits, as there are several resistors important that could slow down the price.

Warning ! This does not mean that the price will collapse, but these entities are taking some profits in a very different context from the year 2021. Let us now look at the different resistance to overcome for ETH.

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On a daily basis, Ethereum must exceed the resistance at $1,680

Ethereum (ETH) is evolving in a tidied up weekly between 1000 and $1,900. To break out, buyers need to keep pushing and close the price above $2,030. A close like this would change the dynamic to a weekly one.

Ethereum is against resistance at $1,680 - February 3, 2023
Ethereum price against the dollar (1D)

Since closing above $1,350Ethereum is in bullish momentum on a daily basis. For now, the institutional bias (EMA 9/EMA 18) is trending up. The price is also in the process of rebounding at the level of these moving averages. However, it will be necessary a fence greater than $1,659 to have a continuing movement. The price is against the resistance at $1,680. Buyers need to continue to pressure sellers to get back to the top of the range at $1,900.

On the other hand, in case of rejectionthe sellers could regain control of the price and bring it towards the support at 1250 dollars. This scenario is not to be ruled out, as there has been no return to the level of the neck line at $1,350 so far.

Momentum is on the upside. The RSI could find a bounce at the level of the bullish trendline in the coming days. As long as this trendline holds, the trend may continue.

Ethereum bullish in the short term

In the very short term, ETH could rebound to $1,640.

Against the dollar, Ethereum is bullish in 4H - February 3, 2023
Ethereum price against the dollar (4H)

The price of Ethereum chains the double bottoms in 4H. The price is moving above the resistance at $1,640. Now we have to use it as support. In the event of a close above $1,725, bullish continuation should be in place. On the other hand, in the event of a reintegration of the range, the sellers could regain control and bring the price down. support at $1,515.

The momentum is bullish in 4H. The RSI is chaining new highs. We will have to continue to maintain the bullish trendline.

Ether underperforms Bitcoin

It has been a few weeks since Bitcoin regained control of the market. However, the price of the pair ETH/BTC is always in a weekly range.

ETH/BTC pair could retrace to the support level at 0.066 BTC - February 3, 2023
Price of Ethereum against Bitcoin (3D)

Since July 2022, the price of the ETH/BTC pair has been moving between the resistance at 0.08 BTC and the support at 0.066 BTC. It seems that the price is once again heading towards this support. To prevent Ethereum and altcoins from suffering, it is necessary at all costs to avoid a fence under the support at 0.065 BTC. On the other hand, a close above 0.079 BTC would be extremely positive for altcoins.

As long as the price remains in this weekly range, there will be no altcoin season. However, a few altcoins can perform in their corner. This is the case of OKB, for example.

The momentum is again bearish. We will have to wait for the RSI to show bottoms and rising tops to regain bullish momentum.

Bitcoin attracts capital, will the trend last?

Bitcoin has been attracting capital since the start of the year. This trend is not negative for cryptocurrencies, because Bitcoin must be attractive for altcoins then benefit from capital turnover. However, during this phase, altcoins can suffer. Bitcoin dominance is found around 44% currently :

Bitcoin dominance is on the rise - February 3, 2023
Bitcoin dominance chart (3D)

In this unit of time, Bitcoin dominance is bullish. The price is at an important technical level, but the price could soon rebound at the level of the institutional bias. For the moment, nothing indicates a trend reversal. It therefore seems possible to regain dominance at the top of the range at 47%.

The RSI shows troughs and ascending peaks. The momentum is in the hands of the buyers. Technical analysis seems to indicate that Bitcoin could continue to attract capital. In the event of a fall, the altcoins could therefore be strongly affected.

The capitalization of altcoins soon to be 670 billion dollars (+20%)?

Altcoins are lagging behind, sure, but altcoin capitalization is bullish in the short term.

Altcoin Market Cap Is Short-Term Bullish - February 3, 2023
Altcoin Cap Chart (3D)

The price of the capitalization of altcoins might rebound at the level of institutional bias and resume the rise towards the weekly resistance at $670 billion. Therefore, buyers of the $440 billion support could take profits. Indeed, the price would end up at the level of the downward trendline, a resistance that has already pushed the price back in 2022.

Momentum is bullish. Indeed, the momentum indicator continues to evolve above from the important area to 58 of RSI. For the moment, nothing indicates a reversal on the RSI.

Finally, Ethereum Finds himself close to significant resistance. Buyers are going to have to push to break down resistance at $1,680. If this scenario plays out, the price will join the weekly resistance at $1,900. Whatever happens, it will be necessary to break this resistance to find a bullish momentum on a weekly basis. The whales, they take some profits. Against Bitcoin, Ether continues to suffer. Bitcoin continues to attract capital. Bitcoin dominance may even continue to climb back to weekly resistance at 47%. Because of this, one should be cautious about altcoins, even if the capitalization of altcoins is bullish in the short term. In effect, in the event of a fall in Bitcoin, altcoins could suffer.

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