Ethereum price remains weak against Bitcoin (BTC) lately amid increased profit-taking and whale activity.
Ethereum started a strong upward movement after the US elections, rising to $3,446. This increase of approximately 20% was a positive development for crypto investors. However, increased profit taking after the rise caused the price to decline again. Under the influence of selling pressure, Ethereum retreated to $3,100 levels.
Whale Movements Affect the Market
Ethereum’s post-election rally took the cryptocurrency to multi-month highs, but that momentum stalled as investors took profits and the price fell to $3,114, a level that currently acts as a key support point.
Recent whale activity points to the increasing volatility of the market. According to the data, a large whale collected 18,049 ETH during the price drops. However, large Ethereum transfers to Binance indicate increasing selling pressure. For example, two different ETH whales transferred a total of 11,286 ETH (about $36 million) to Binance. Such large exchange transfers usually signal impending sell-offs and potential liquidations.
Technical indicators on Ethereum price are giving bearish signals in the short term. The Moving Average Convergence Divergence (MACD) indicator reveals that the momentum is decreasing. Although the MACD line remains above the signal line, the flattening of the histogram bars shows that the bulls are not strong enough. If this weak momentum continues, the selling pressure on Ethereum may increase further.
In addition, the Bull-Bear Force (BBP) indicator also reflects a similar market sentiment. BBP values indicate that a balancing process has begun after the recent upward movement. The failure of BBP to reach new highs suggests that the bulls are insufficient to push the price of Ethereum above the $4,000 level. The continued decline in BBP could lead to bears gaining strength, increasing the risk of a deep correction as buyers lose control.
The Ethereum price is going through a difficult period with increasing selling pressure and whale movements. Technical indicators are indicating that a short-term correction or consolidation process has begun, and investors should be careful. If the selling pressure continues, the Ethereum price could fall further and see new lows by breaking the support levels.
