Key Takeaways
What did Jeffrey Wilcke do?
Ethereum’s co-founder deposited ETH worth millions into Kraken, fueling speculations of a sell-off.
Is Ethereum’s price likely to fall further?
It could fall by another 11% if it doesn’t hold on to the $3,900-level.
Against the backdrop of market uncertainty, Ethereum (ETH) might be weakening on the charts after losing its key support. This bearish outlook can be further reinforced by Ethereum co-founder Jeffrey Wilcke, after he appeared to dump ETH worth millions.
Ethereum whales add billions worth of ETH!
On 25 September, on-chain analytics platform Lookonchain shared a report revealing Wilcke’s $5.99 million ETH dump on Kraken. This transaction was recorded when the altcoin was trading near the $3,950-level.
Worth noting, however, that it is yet to be confirmed if Wilcke has indeed sold his ETH holdings, or if he’s just moving assets from a wallet to an exchange. This is typically a precursor to a potential sell-off.
That’s not all though as at the same time, whales seized the dip by buying heavily. Lookonchain also revealed that 15 wallets purchased 406,117 ETH worth $1.6 billion from Kraken during the market dip. These wallet holders included Galaxy Digital, BitGo, and FalconX.
Hence, the question – Is this an ideal time to buy ETH or will the altcoin’s price continue to fall in the coming days?
Ethereum’s (ETH) price action and technical analysis
Over the last seven days alone, ETH’s value has fallen by over 13%. In the last 24 hours too, it fell by over 2%. Thanks to these downside moves, ETH was trading near the $3,940-level at press time. However, a hike in investor participation could change the altcoin’s fortunes soon.
According to AMBCrypto’s technical analysis, ETH is now near a make-or-break point at $3,900 after losing its strong support at $4,050 on Thursday. Following this breakdown, sentiment has shifted to the negative side.
Source: ETH/USD, TradingView
Based on its press time price action, if the downside momentum continues and ETH’s daily chart closes below the $3,900-level, there is a strong possibility it could dip by 11.50% and reach the next support at $3,400.
Here, it’s also worth pointing out that the Bollinger Bands indicator had broadened notably, with the price at the lower boundary of the bands. This suggested that the asset might be in oversold territory, with a price reversal likely possible.
On the contrary, the Average Directional Index’s (ADX) value climbed to 20, below the key threshold of 25 – A sign of weak momentum.