ETH Could Retest $1,580 Support If Sell-Off Fears Persist

There are fears of a possible sell-off after an Ethereum (ETH) whale transferred a huge amount of tokens onto an exchange. According to a post shared earlier today by the whale tracking platform, Whale Alerts, a whale transferred 64,000 ETH from an unknown wallet to Binance.

🚨 🚨 🚨 🚨 🚨 64,000 #ETH (104,970,266 USD) transferred from unknown wallet to #Binancehttps://t.co/HOJzddxOg7

— Whale Alert (@whale_alert) October 4, 2023

The post also highlighted that the transferred ETH was worth approximately $104,970,266. However, around the same time, Whale Alerts also shared in an X post that 100,000 ETH was removed from Binance and transferred to an unknown wallet. Unfortunately, this did not seem to change the minds of hesitant investors.

🚨 🚨 🚨 🚨 🚨 🚨 🚨 100,000 #ETH (163,969,319 USD) transferred from #Binance to unknown wallethttps://t.co/iBM2vAlrT7

— Whale Alert (@whale_alert) October 4, 2023

ETH holders have already started ridding themselves of some of their ETH holdings in anticipation of a possible sell-off. At press time, CoinMarketCap indicated that ETH was trading hands at $1,644.73 after its price decreased by 1.34% in the past 24 hours of trading.

This meant that the altcoin leader was trading just above its 24 hour low price of $1,630.74 after it set a peak price of $1,667.58 over the same time period. Additionally, ETH suffered a more than 29% drop in its 24 hour trading volume throughout the past day. This meant that the token’s intraday volume settled at around $5.23 billion at press time.

The latest slip in ETH’s price also caused it to weaken against its largest competitor, Bitcoin (BTC), by about 3.08%. Despite this, ETH still managed to secure a price rise of 3.43% over the past seven days. The cryptocurrency was also in the green by 0.36% on its monthly time frame.

Daily chart for ETH/USDT (Source: TradingView)

From a technical standpoint, ETH dropped below the $1,690 support level over the past 3 days of trading. Furthermore, the daily moving average convergence/divergence (MACD) indicator suggested that ETH’s price may continue to drop as the daily MACD line was closing in on the daily MACD signal line.

Should these 2 lines cross, it could indicate a continuation of the current bearish trend. In this scenario, ETH may retest the $1,580 support level within the coming 7 days. This bearish thesis could be invalidated if ETH is able to claim a position back above the recently-breached $1,690 mark.

If the altcoin’s price is able to recover above this noteworthy price point, then it may continue to rise in the following few days. This may then result in ETH attempting a challenge at the subsequent barrier at $1,790.

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