Ethereum whales trigger bearish market alert as price hits USD $1,600
Ethereum bounced near USD $1,650 after defending a key support level while the recent behavior of whales, the exit of long-term holders, and the drop in the Smart Money Index resemble a setup similar to what preceded the last major price breakout.
However, the price increase occurs in a context that looks less solid when observing on-chain flows and the behavior of large participants. The overall reading is that the bounce exists, but it could be built on a fragile foundation.
The first alert comes from the behavior of Ethereum whales, understood as large addresses capable of moving a significant portion of the supply. According to the cited data, the supply controlled by whales, excluding exchanges, increased from June 9 from about 124.75 million to 125.12 million ETH. At first glance, this movement could be interpreted as accumulation.
The second signal of concern comes from the net position change of long-term holders. This group, generally defined as addresses that have held ETH for at least 155 days, is often watched because it represents more patient hands that are less sensitive to daily volatility.
From a price perspective, ETH retraced 38% from the May high of USD $2,424 to a short-term low of USD $1,503 seen earlier this month. After hitting that level, it charted a V-shaped recovery within an ascending channel. Earlier on Thursday, the price dropped to USD $1,603 before a brief recovery near USD $1,650.
The bullish scenario requires, according to the cited analysis, a clean break above USD $1,717, a level that today limits the recovery range. If that break materializes, the channel could open up space for a larger advance and bring back into focus the lost May high of USD $2,424.
Ethereum bounced near USD $1,650 after defending a key support level while the recent behavior of whales, the exit of long-term holders, and the drop in the Smart Money Index resemble a setup similar to what preceded the last major price breakout.
However, the price increase occurs in a context that looks less solid when observing on-chain flows and the behavior of large participants. The overall reading is that the bounce exists, but it could be built on a fragile foundation.
The first alert comes from the behavior of Ethereum whales, understood as large addresses capable of moving a significant portion of the supply. According to the cited data, the supply controlled by whales, excluding exchanges, increased from June 9 from about 124.75 million to 125.12 million ETH. At first glance, this movement could be interpreted as accumulation.
The second signal of concern comes from the net position change of long-term holders. This group, generally defined as addresses that have held ETH for at least 155 days, is often watched because it represents more patient hands that are less sensitive to daily volatility.
From a price perspective, ETH retraced 38% from the May high of USD $2,424 to a short-term low of USD $1,503 seen earlier this month. After hitting that level, it charted a V-shaped recovery within an ascending channel. Earlier on Thursday, the price dropped to USD $1,603 before a brief recovery near USD $1,650.
The bullish scenario requires, according to the cited analysis, a clean break above USD $1,717, a level that today limits the recovery range. If that break materializes, the channel could open up space for a larger advance and bring back into focus the lost May high of USD $2,424.