ETH Whale Triggers Price Dip while Bitcoin’s (BTC) Rally Faces Skepticism due to Banking Sector Woes
In the last few days, the price of ETH has seen a significant uptick, breaking beyond $1,800. However, recent market data indicates that many ETH tokens were moved into Binance over the weekend, casting doubts about a sale. This transfer led to ETH losing a part of its market value.
Ethereum Whale Moves 18,000 ETH
The price dipped after over 18,000 ETH, representing over $33 billion at the time of writing, and was moved into Binance in one sweep. The transaction could be traced, but the whale’s identity remains unknown.
However, users note that the wallet is very popular in the space. The whole transaction costs just $1, but the worrying thing here is that when something of this nature happens, it usually triggers a sell-off that plummets the asset’s price.
Due to the movement, ETH lost 2.53% to consolidate at the $1800-$1807 region. According to a cryptocurrency analyst, Akash Girimath, once the prices dip below the $1,636 level, it would invalidate the bullish cycle.
It could see ETH lose the crucial 50, 100, and 200-day EMAs hovering in the $1,588-$1,529. If the trend continues, the price could hit the $1,500 level, meaning that the bears have full control, constituting a 15% downside for ETH.
On the bullish side, the altcoin has some resistance to overcome before it can breach the $2,000 level, which would be possible if the asset can sustain upward momentum. However, all this depends on the macroeconomic environment.
The current economic outlook favors crypto assets, and ETH has been included. The ETH network’s Shanghai update is slated to take place in the coming days, and it will enable faster transactions while allowing users to unstake tokens.
If the upgrade goes as planned, the price of ETH could see a massive uptick by the end of the year. Additionally, the ETH news is recording a massive net inflow, tagging over $35 million. The price of ETH could continue the uptrend if BTC can sustain the momentum above the $27,000 mark.
BTC Breaks the $28,000 Mark
BTC’s rally only seems to be starting, but traders are unconvinced by the staggering 36% uptick in the last week. There are reasons for this statement, and the prime reason is the banking sector’s woes. The collapse of the 167-year-old bank Credit Suisse indicates that the current economic turmoil is far from over.
BTC’s quarterly features were the in-thing among the whales, with the indicators pointing towards sellers asking for more money to delay the settlement for a longer period. As a result, the BTC future contracts in a healthy market should be trading at a 5%-10% annual premium. Investors call this situation a contango.
The bitcoin futures indicator has been unchanged for the last week, hovering at 2.2%, indicating a lack of demand from leveraged bullish activity. A number below 5% shows that investors are pessimistic. This number is worrying because a 36% uptick does not reflect the same attitude.
The overall sentiment on the BTC price is that professional traders are not feeling bullish above the $26,000 mark, and this does not have to be bad, but unless confidence is regained in the market, the chance of a $30,000 BTC continues to fade. If the banking system does collapse fully, the price of BTC will not necessarily go up and may fade faster than market expectations.