Like most altcoins, Ethereum (ETH) has seen its price succumb to the negative market sentiment in recent weeks. This unfavorable market condition has consistently caused the second-largest cryptocurrency to trade beneath the $1,700 level.
Could Ethereum Price Fall To $1,200?
In an X post dated Wednesday, September 6, crypto analyst Ali Martinez offered insight on the price of Ethereum. The analyst shared that the value of ETH faces a potential significant correction to $1,200 if it stays below $1,680.
Using data from the blockchain analytics platform IntoTheBlock, Martinez’s projection revolves around the purchasing areas where most investors acquire ETH. According to the analytics platform, the price zones beneath the range of $1,633 to $1,681 are “weak purchasing areas,” which hint at weak support.
IntoTheBlock data shows few investors bought ETH beneath this level – down to the $1,385 price range. This ultimately implies that the support is thin around those levels – as indicated by the small size of the green circles in the image above.
With weaker support at the lower price ranges, the Ethereum price might be unable to stay afloat should bearish pressure increase. This explains why crypto analyst Ali Martinez believes the ETH price beneath $1,680 is a source of concern for traders.
Meanwhile, the significant percentage of holders currently at a loss exacerbates this risk. Some ETH investors may choose to sell their assets to cut their losses, which could trigger downward pressure on the cryptocurrency’s price.
This Smart Whale Purchased 19,500 ETH – What Do They Know?
On a positive note, an Ethereum whale has been purchasing ETH in 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).
Typically, when large amounts of cryptocurrencies are moved out of centralized exchanges, it indicates that whales are accumulating – and sometimes anticipating a price rally.
Moreover, looking at this particular whale’s past transactions shows that they have the habit of buying Ether at low prices and selling at high prices to make a profit.
Hence, this latest transaction suggests that the whale is expecting a bounce. However, it is worth noting that the price of Ethereum has not changed in the past day.
According to CoinGecko data, the Ether token currently trades at $1,624.35, with a 0.8% price decline in the last 24 hours.
ETHUSDT price consolidating on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from SoFi, chart from TradingView