Ethereum has been hovering in a range for the last three weeks. The bulls and bears seemed to be in a tough fight near the psychological $2500 level. Recently, Ethereum bulls attempted to break out of the consolidation above $2800.
The bulls failed, retreating to the $2400 level. At press time, Ethereum was exchanging hands at close to $2519, recording a positive gain of nearly 3.93% in intraday.
Whales are Accumulating at the Lows While Other Watch
Despite consolidation in ETH price near the $2500 zone, analysts noticed something cooking behind the curtains. A significant change in the whale holdings in the last couple of weeks while the price hasn’t moved significantly.
As per the analysts, the top addresses (whales) held nearly 43.5% of the total supply in mid August which has now surged to 44.01%, a 0.51% jump in just two weeks.
A significant jump in whale holdings suggests whales are accumulating at the lows while retailers are panicking and liquidating their investments.
Moreover, as per the data obtained by an on-chain analytics website Santiment, a notable change was observed in the price-DAA divergence indicator. The bearish divergence between the price and DAA (Daily active addresses) seemed to be decreasing, highlighting the waning seller interest.
The price-DAA divergence is an on-chain metric which reflects the change in bearish or bullish divergence between the asset’s price and daily active addresses. Decreasing bearish divergence indicates a potential buying in Ethereum in the upcoming sessions.
Ethereum May Reclaim $3000 Level in September: Here’s How
Ethereum price was hovering below the 20, 50 and 200-day EMAs, suggesting that bears are dominant. However, the last couple of weeks saw a range-bound movement in Ethereum.
On the higher side, the bears have established themselves firmly near $2800 level. On the contrary, the bulls dominated near the $2350 level. Now, a clear trend may be observed on the charts if the price breaks on either side.
Additionally, the on-chain metrics have indicated a possible breakout scenario which may be validated if the ETH price surpasses $2800. On a sustained, breakout Ethereum may reclaim its presence near the psychological $3000 level in September.
At the time of writing, the RSI line was near 42 points and that of the 14-day SMA line was placed at 42.21 points. A bullish crossover between the RSI and SMA line suggests a potential bullish trend continuation.
