ETH Drops Below Key Support as Whale Sells Holdings to Pay Debt

The on-chain tracking platform Lookonchain revealed in an X post today that a whale made over $2 million on Ethereum (ETH). According to the post, this whale has been long on the altcoin leader, but had to sell 12,048 ETH, worth $23.4 million, to repay debt.

A whale who is long $ETH sold 12,048 $ETH($23.4M) just now to repay debt, making over $2M.

The whale bought 12,047 $ETH($21.3M) from #Binance on Oct 23, when the price was ~$1,768.

The whale was long $ETH by depositing $ETH to Aave&Compound and lending $USDT to buy more $ETH. pic.twitter.com/6y2y6RIvVa

— Lookonchain (@lookonchain) November 18, 2023

This particular whale bought 12,047 ETH from Binance on 23 October 2023, when the price was around $1,768. Lookonchain revealed that the whale went long on the cryptocurrency by depositing ETH to Aave and Compound.

The whale’s sale seems to have impacted the leading altcoin’s price over the past 24 hours. Data from the cryptocurrency market tracking website, CoinMarketCap, indicated that ETH dropped 2.26% over the past 24 hours. As a result, the cryptocurrency was changing hands at $1,932.55 at press time.

ETH’s latest drop in price was a continuation of its woes over the past 7 days. According to CoinMarketCap, the altcoin was down 5.94% on the weekly time frame as well.

Daily chart for ETH/USDT (Source: TradingView)

From a technical perspective, ETH dropped below the $1,945 support level over the past 24 hours. Subsequently, the cryptocurrency was at risk of continuing to fall in the next few days. This could lead to ETH falling to as low as $1,830 in the short term.

The bearish thesis may be invalidated if ETH closes a daily candle above $1,945 in the next 48 hours. In this more bullish scenario, ETH could look to rise to the next major resistance level at $2,065. If the leading altcoin is able to flip the $2,065 resistance level into support, then it may have the foundation needed to rise to $2,300.

Traders and investors will want to note that the Moving Average Convergence Divergence (MACD) line crossed below the MACD Signal line during the last few days. Furthermore, the MACD line was breaking away below the MACD Signal line. This suggests that ETH’s bearish trend was growing stronger.

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