Ethereum’s price has just slipped below $2000 amid the bloodbath within the crypto space fueled by Terra’s UST. While the UST de-pegged and dropped hard to $0.5, the LUNA price dropped below $0.05. And hence due to the extreme market conditions, the Bitcoin price slashed below $27,000, but now hovering around $28,000. However, amid the free-fall, the ETH price maintains some stability and displays the possibility of ranging high by forming higher highs & lows.
As the ETH price reached the rock bottom levels around $1720, a larger flip ignited a strong trend reversal. And hence the second-largest crypto could uplift itself from the trembled situation. With the heavily discounted prices, Ethereum whales got activated and accumulated a large chunk of ETH. The no of addresses with a balance of more than 1000 ETH suddenly spiked in the past couple of days.
The whales quickly increased their holdings by 0.81% adding up nearly 180,000 ETH which assisted to induce more stability in the ETH price. And hence the possibility of the asset rebounding firmly above $2000 emerges as the level to reach is above $2200. As these levels may act as a strong resistance now and support later, slicing through these levels and hitting $2250 is mandatory.
On the other hand, despite a couple of indicators pointing out an upswing, the possibility of rejection still hovers. Mainly due to the huge accumulation of the asset between $2197 and $2259. Here, nearly 3.81 million ETH were acquired by nearly 477.44K addresses. And hence reaching these levels, the possibility of traders exiting the deal is pretty high as they are in a significant loss now.
Collectively, Ethereum appeared to be stronger and more steady compared to any other crypto asset amid the bearish trend. Maybe the ETH 2.0 staking where 70% of the circulation is locked and the burn mechanism assisted the price to sustain. However, in case of a rebound, if the ETH price passes the $2200 barrier a strong uptrend may make its way out.
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Source: https://coinpedia.org/ethereum/ethereum-whales-are-buying-at-the-dip-but-still-why-eth-prices-are-expected-to-be-capped-at-2200/