In This Post:
- Ethereum price drops below $3000 due to high selling.
- Whales are buying Ethereum, suggesting a possible rebound.
- August shows mixed results, suggesting high ups and downs.
Ethereum‘s price has seen big ups and downs this August. This month often brings mixed movements, leading to high volatility. Ethereum’s price is now only 3% away from testing key support levels. Despite the drop, recent buying by large investors, known as whales, suggests potential for a price rebound.
Whale Buying Amid Ethereum Drop
Recent data shows that big investors are buying Ethereum, even as prices drop. A notable investor, tracked by Lookonchain, bought 2,424 ETH worth $7.22 million. This adds to their earlier purchase of 19,436 ETH worth $68.25 million since May 29. Such whale activity usually means these investors see potential for a price rise.
However, even with these large buys, Ethereum’s price fell below $3000 recently. This suggests that despite the buying, selling pressure remains high.
Ethereum Testing Key Support Levels
Ethereum’s price dropped 3% in a day, hitting $2,895. This drop reduces Ethereum’s market cap to $345.8 billion. The daily chart shows that Ethereum is close to testing a multi-month support level. This level is part of a flag pattern, where the price moves in a rectangle, looking like a flag on a pole.
A rebound from this support level could lead to a 30% rally, challenging the flag resistance. If Ethereum breaks above this resistance, it could signal the end of the current price drop and drive the price up to $5000. The Relative Strength Index (RSI), nearing oversold territory, might also encourage buyers to step in.
Volatility in Ethereum Price During August
Ethereum’s price performance in August has been very volatile. Coinglass data shows that the returns for this month have varied widely. The highest return was +92.86% in 2017, and the lowest was -34.79% in 2018. The average return for August is +7.47%, while the median return is -7.33%. This data highlights the potential for big price swings in August.
If Ethereum breaks below the flag pattern, selling pressure might increase. This could push the price down to $2400, showing how important the current support level is.
In summary, Ethereum’s price is under pressure, but big investors are buying, suggesting potential for a rebound. The key support levels and historical ups and downs in August will play a crucial role in determining the next move for Ethereum.
