- Ethereum prices fell as low as $900 today.
- Large “whale” investors seem to be buying the token, though.
- This could help ETH prices rise once again.
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Ethereum has incurred significant losses in the past 24 hours. However, “whale” investors are buying these tokens at a discount fostering hopes of a prompt price recovery.
Ethereum Loses Critical Support Barrier
Following a 90% bull rally since the beginning of the year, the Tom Demark (TD) Sequential indicator has warned investors that Ethereum was bound for a steep price correction.
This technical index presented sell signals on both the 1-day and 12-hour charts, forecasting that the largest altcoin by market capitalization was approaching overbought territory.
What came next was a 32.50% correction that saw ETH drop from a high of $1,355 to a low of $915 in the past 24 hours.
IntoTheBlock’s IOMAP model reveals that Ethereum lost a critical area of support represented by the $1,140 level. More than 152,000 addresses bought over 6.7 million ETH around this price point.
Now that the $1,140 hurdle has become resistance, it may not be easy to push prices back up. Holders within this price range may try to break even each time Ether goes up to avoid further losses.
The spike in sell orders could contain rising prices until there are no more tokens to sell. But if the selling pressure is significant enough, Ethereum may aim for $800 or even $700 since there is no considerable demand barrier underneath it, based on IOMAP cohorts.
Regardless of the lack of significant support walls underneath Ethereum, whales seem to have bought the dip. Santiment’s holders distribution chart shows that approximately 17 new addresses holding 10,000 to 100,000 ETH joined the network in the last 24 hours.
The rising demand coming from high net worth individuals during such a steep correction shows conviction about the potential…