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ETH Could Experience Downtrend After Its Short-Term Bullish Event

Published 06/07/2023, 14:02
©  Reuters ETH Could Experience Downtrend After Its Short-Term Bullish Event
ETH/USD
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COIN
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  • Whale Alert observed 25,264 ETH was transferred from an unknown wallet to Coinbase (NASDAQ:COIN).
  • ETH is currently trading between its intra-day high of $1,938.14 and intra-day low of $1,897.12.
  • ETH could experience a short-term uptrend, however, it may face a fall after the slight surge.

The blockchain tracking platform Whale Alert informed the crypto community that 25,264 ETH, valued at approximately $48,302,924, was transferred from an unknown wallet to Coinbase. The crypto whale tracking platform also observed another whale movement where 30,000 ETH was transferred from an anonymous wallet to OKEX. There is a possibility that these whale transfers could affect ETH’s price sentiment.

ETH is currently trading between its intra-day high of $1,938.14 and intra-day low of $1,897.12, according to CoinMarketCap. At the reported time, ETH faced a 0.71% fall in 24 hours and is currently priced at $1,923.42. However, the seven-day surge of 4.29% continues to help ETH reside in the green zone. Moreover, the recent whale movement from wallet to exchange could trigger selling pressure for ETH.

ETH 7-Day Chart (Source: CoinMarketCap)

Looking at the ETH/USD 4-Hour Chart, the candlesticks hit the lower band of the Bollinger Bands indicator and bounced back forming new green candlesticks. Although $2,000 could be the new target for ETH, the altcoin could find it difficult to reach that level in a short span of time.

The whales were probably hoping to take advantage of this short-term surge. Earlier, the whales transferred large amounts of ETH from wallet to exchange — this could be an indication that these traders were hoping to take advantage of the current short-term uptrend.

ETH/USD 4-Hour Chart (Source: TradingView)

The candlesticks could reach the middle of the Bollinger Band indicator and bounce back if the selling pressure increases for ETH. If the candlesticks break through the middle line, ETH could reach the upper band level and then witness a fallback. Moreover, the RSI also confirms that ETH would experience a short-term uptrend as a bullish crossover is forming.

Hence, indicators confirm that ETH could experience a short-term bullish trend. However, if the whales start selling, then, there is a high possibility that this could contribute to ETH’s downtrend.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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