Ethereum price is hovering near $2,471 after a strong month of August rise due to increased derivatives trading and a big whale transaction that has kept the traders focused on the next level of resistance.
At press time, Ethereum is trading at $2,471.16, up 2.25% over the past 24 hours. In the month of August, the cryptocurrency has gained by 32.8%.
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What Makes Ethereum Price Trade Above $2,400?
The crypto remains trading well above the $2,247.57 middle line of its 20-day Bollinger Bands. Despite the consolidation in the past days, it is clear that the strong gain in August has created an environment that favors the current bullish setup.
In the chart, we have $2,084.23 as one of the critical support levels. The price needs to hold above this point to keep the current bullish setup intact.
What Does the Ethereum Price Graph Show?
The upper line of Bollinger Bands of Ethereum (ETH) is at $2,783.71, forming an important level of resistance for any upward action.
The RSI indicator is at 69.13, just slightly under the traditional overbought level, meaning a lot of strength in the market despite there not being much space left before becoming overextended.
The elevated RSI supports the bullish bias of the market, although volatility may be higher for the ETH price if it gets to the $2,783 mark without new buying activity.
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How Do Whale Transactions Affect Ethereum Price?
According to Lookonchain, whale 0xF626 received 102,913 ETH worth around $248.6 million before transferring 2,858 ETH ($7 million) to exchanges. The address still holds 100,055 ETH worth about $241.6 million.
Lookonchain described the transaction by stating, “Whale 0xF626 is selling 102,913 $ETH($248.6M).” The post also reported that the whale had deposited 2,858 ETH into exchanges 20 minutes earlier.
Such transactions to exchanges might result in selling pressure should there be more ETH transfers, but there is no proof from the information available that the whale plans to sell all of its holdings.
Will the Ethereum Price Go Beyond $2,783?
According to the data from Coinglass, Open interest for Ethereum has exceeded $30 billion with the trading volume crossing $90 billion during the August rally. This shows heavy derivatives activity and increased trading activity around ETH.
Moving past $2,783.71 would strengthen the bullish structure while breaking below $2,247.57 would weaken the momentum. Currently, traders are determining if Ethereum is able to turn its August gains into a breakout.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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