Like most altcoins, Ethereum (ETH) has seen its price fall on negative market sentiment in recent weeks. This poor market condition often causes the second largest cryptocurrency to trade below the $1,700 level.
Can Ethereum Price Fall To $1,200?
on an X post dated Wednesday, September 6, crypto analyst Ali Martinez offers insight into the price of Ethereum. The analyst shared that the price of ETH faces a potentially significant correction to $1,200 if it stays below $1,680.
Source: IntoTheBlock/ali_charts
Using data from the blockchain analytics platform IntoTheBlock, Martinez’s projection revolves around the buying areas where most investors are acquiring ETH. According to the analytics platform, price zones below the range of $1,633 to $1,681 are “weak buying areas,” indicating weak support.
IntoTheBlock data shows that few investors bought ETH below this level – up to the $1,385 price range. This ultimately means that support is thin around those levels – as shown by the small size of the green circles in the image above.
With weaker support in the lower price ranges, the price of Ethereum may not be able to stay afloat if the bearish pressure increases. This explains why crypto analyst Ali Martinez believes that the price of ETH below $1,680 is a source of concern for traders.
Meanwhile, the significant percentage of holders who are currently losing exacerbates this risk. Some ETH investors may choose to sell their holdings to cut their losseswhich may cause downward pressure on cryptocurrency prices.
This Smart Whale Bought 19,500 ETH – What Did They Know?
On a positive note, an Ethereum whale has bought ETH over the past two days, according to the on-chain analytics platform Lookonchain.
On Tuesday, the 5th of September, the analytics platform revealed that the whale deposited $36 million USDC on Binance and withdrew 9,819 ETH (worth $15.9 million at the time).
Subsequently, the whale withdrew 9,689 ETH (worth $15.8 million) from Binance on Wednesday, bringing their total purchase to 19,506 ETH (equivalent to $32 million).
Usually, when many cryptocurrencies are transferred from the centralized exchange, it shows that the whales are congregating – and sometimes anticipating a price rally.
Also, looking for in these particular whale transactions shows that they have a habit of buying Ether at a low price and selling at a high price to make a profit.
So, this latest transaction suggests that the whale is expecting a bounce. However, it is worth noting that the price of Ethereum did not change during the previous day.
According to CoinGecko datathe Ether token is currently trading at $1,624.35, with a 0.8% price decrease in the last 24 hours.
ETHUSDT price consolidating on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from SoFi, chart from TradingView
