Ethereum (ETH): whales go on a diet ahead of Shanghai update

Whales change their behavior – THE Bitcoin still fails to return to the level of the psychological round number of $30,000. For its part, Ethereum is struggling to get back to the level of the round figure of $2,000. With the Shanghai Update just weeks away, will Ethereum manage to get back above $2,000? Could altcoins benefit from the break in Bitcoin? It looks like the whales are changing their behavior…

This Ethereum price analysis is brought to you in collaboration with CryptoTrader and its algorithmic trading solution finally accessible to individuals.

Bulls weaken at the resistance level at $1,900?

Ethereum analysis in 3 days

Ethereum (ETH) is still moving above resistance-turned-support at $1,700. However, the course is rejected at the approach of the resistance at $1,900. We can see it thanks to the wicks present on the course, and which show the presence of vendors :

Ethereum price against the dollar (3D)

The course tries to break the bearish trendline implementation in November 2021. The course could count on the institutional bias (EMA 9/EMA 18) bullish, and on the bracket at $1,700 to bounce back. The buyers would have to show up and the price would have to close above the last weekly high at $2,030. Indeed, this would make it possible to find a bullish momentum weekly. If the medium to $1,700 yields, the price could then fall towards the last trough marked at $1,370. If the price falls, the buyers will have to defend this level.

The RSI seems to be breaking the bearish trendlineand this could lead to bullish volatility if the RSI remains above this trendline.

In 4H, Ethereum could rebound from the support level at $1,775

The price rebounded at the level of the bracket at $1,715buyers should show up quickly:

Ethereum may bounce off the support level at $1,775.
Ethereum price against the dollar (4H)

The course evolves at the level of bracket at $1,775and at the level of bullish institutional bias. If the price rebounds here, it could reach the next resistance located at $1,875. It will be necessary to break this resistance to review the price of Ethereum at $2,000.

The RSI broke the bearish trendline, buyers could take advantage of it. A few weeks away from the Shanghai update, Will buyers take advantage of this to “buy the rumour, sell the news”?

Whales take profits on Ethereum

On-chain analysis helps to understand the behavior of players with portfolios that can impact the market. Whales are entities with more than 1,000 BTC. Here, we will focus on entities with more than 10,000 ETH :

Addresses with more than 10,000 ETH are taking profits.
Addresses with more than 10,000 ETH Source: Glassnode

According to Glassnode data, whales have bought in November 2022 when the course was between $1,000 And $1,250. Currently, the behavior of these entities seems to be changing. In effect, the whales take profits at the level of important resistancesafter a non-negligible increase.

The ETH / BTC pair rebounds to better fall?

The ETH/BTC pair is in a weekly range between 0.06 and 0.08 BTC. Last week, the course broke the intermediate support of the range located at 0.066 BTC. Despite everything, a rebound is currently taking place:

The price of the ETH/BTC pair could be rejected at the resistance level at 0.066 BTC.
Price of Ethereum against Bitcoin (3D)

The price is trying to rebound, but the rebound might be short-lived. Indeed, the resistance at 0.066 BTC could reject the course in the coming days. If this scenario takes place, the price could reach the next support located at 0.06 BTC. On the other hand, if it is only a DETOURand the price rises above the resistance, buyers may well take advantage of this. It would be a bullish move that would trap sellers. In this case, the price could reach the top of the range. Beware, the price must regain momentum with bottoms and rising tops to be bullish on this pair.

The RSI is always bearishit would be necessary to resume a momentum with troughs and ascending peaks (green arrow).

The dominance of Bitcoin still does not fall, the altcoins will still suffer?

As Bitcoin stagnates, altcoins could take advantage of this to express themselves. However, this is not the case, like the Binance Coin which cannot break the resistance at $330. Bitcoin dominance is moving around 47% :

Bitcoin dominance remains at the weekly resistance level.
Bitcoin Dominance Chart (3D)

If Bitcoin dominance continues to climb, Bitcoin will continue to attract capitaland altcoins will remain fragile. The institutional bias is on the upside, it could act as a dynamic support in the event of a fall. However, if the price gets rejected below the weekly resistance, it could mark a best local. Thus, altcoins could take advantage of this to finally express themselves.

The RSI seems to be blocking at the level of the resistancehe could join the bullish trendline set up in September 2022. The trendline would have to give way to show that the movement is running out of steam. As long as the RSI moves above the trendline, buyers have their hands on the momentum.

Altcoin Capitalization Could Rebound at Institutional Bias

The capitalization of altcoins is in a tidy between $670 billion And $480 billion. As we have seen, Bitcoin is currently attracting capital. Despite everything the altcoins could bounce off the bullish institutional bias :

The capitalization of altcoins could rebound at the level of the bullish institutional bias.
Altcoin Cap Chart (3D)

The price still blocks at the level of the bearish trendline. If the buyers manage to break this resistance, the price could quickly reach the weekly resistance located at $670 billion. On the other hand, if the course is rejected, it could join the next support at 480 billion dollars. For the buyers, it would be necessary to keep the last trough marked at $495 billion.

The RSI continues to move above the bullish trendline. He even tries to break the resistance around 57. One should revisit bottoms and ascending tops on the RSI, starting by moving above 67.

The whales bought ETH at the end of 2022, but their behavior is changing. Indeed, it would appear that these entities are taking profits at the resistance level at $1,900. Ethereum continues to move above $1,700, but price is still stuck below resistance at $1,900. In the short term, the price may rebound from the support level at $1,775. ETH/BTC has dropped below weekly support, sellers have a chance to drive home the point. Bitcoin continues to attract capital, Bitcoin dominance remains stuck at weekly resistance at 47%. If the trend continues, altcoins could suffer. The capitalization of altcoins remains stuck under the bearish trendline, it would have to give in to find the price at the resistance level at 670 billion dollars.

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