Ethereum's price has dropped strongly from its yearly high, with a break below its 200-day moving average.
Ethereum's open interest has decreased, which shows that investor sentiment is waning further price decline.
However, analysts expect Ethereum's turning point to be around the $2,200 level.
In the middle of it all, an Ethereum whale is accumulating the cryptocurrency between $3,000 and $2,100—which confirms this range as a major turning point.
Ethereum has been through several challenges over the last few months.
It is currently down by around 45% from its yearly high of around $4,086 and by 36% since the approval and launch of the spot ETFs.
To top things off, the ongoing drop has been followed by a decrease in open interest, which is down by around 2.42% in the 24 hours since writing and has plummeted from a high of $17 billion in late May to around $13.5 billion where it now sits.
Ethereum exchange open interest
These developments have raised concerns about Ethereum continuing further down in its decline, or experiencing a break below the $2,000 mark.
According to the charts, Ethereum dipped below its 200-day simple moving average between 31 July and 1 August, which has historically been a bearish indicator for the cryptocurrency.
Ethereum’s price action
For context, the last major break below happened In January 2022 and led to an 80% price decline from $3,400 to $910.
Interestingly, according to analyst Crypto Ed in a recent tweet, Ethereum was likely to have rebounded off the $2,900 and $2,700 price levels, as illustrated by the green box below
However, the analyst’s worst fears seems to have materialized, with Ethereum breaking far below $3,700 and now aiming for a rebound off the $2,300 - $2,000 range.
Amid the bearishness of the entire market and Ethereum’s break below $2,700, LookOnChain highlighted something interesting about a certain Ethereum whale in a tweet from last week.
Trader accumulating Ethereum
According to the market intelligence platform, this trader has a 100% win rate and has been accumulating a huge amount of ETH for a while now.
LookOnChain noted that since 29 May, this whale trader has been actively accumulating ETH and now has around 17,000 of the cryptocurrency, with an average buying price of $61 million, an average price of $3,587 per ETH, and an unrealized loss of around $7.6 million.
This week, the whale bought another .4,000 ETH worth $12.58 million through four key addresses, which have repeatedly bought high and sold low with no losses since November 2022.
In summary, this whale's choice to accumulate Ethereum between $3,000 and $2,100 says a lot about this price range, and the possibility of a price recovery in between.
Smaller investors can aspire to do the same by monitoring the behaviour of the cryptocurrency, especially between $2,700 and $2,100.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.