Ethereum (ETH) price is trading around $3,445, down 17.5% from the previous month, but up slightly by 3.5% over the past week. The short-term pullback hides a deeper concern – Ethereum’s chart shows two bearish crossovers forming. Still, Ethereum whales added almost $900 million worth of ETH in just a few days.
The question is, what do they see that most traders don’t?
Sponsored Sponsored
Ethereum whales continue to buy despite looming bearish EMA crossover
On the daily chart, Ethereum faces a potential short-term momentum change. The 50-day EMA is approaching levels below the 100-day EMA, a bearish signal that often indicates a slowdown in price strength.
(EMAs are averages that give more weight to recent prices and can help identify trend changes faster than regular moving averages.)
The last time a similar crossover occurred (when the 20-day EMA fell below the 100-day EMA in early November), ETH fell nearly 22% in less than a week.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Now, another warning is emerging as the 20-day EMA is inching towards the 200-day EMA. If selling increases after the first crossover, a second crossover may soon follow, accelerating downside pressure.
Despite this setup, the whale remains motionless. According to Santiment on-chain data, the holdings of large wallets increased from 101.44 million ETH on November 10 to 101.7 million ETH on November 12. This is an increase of approximately 260,000 ETH, which is equivalent to approximately $900 million at current prices.
Sponsored Sponsored
This suggests that whales see the latest selloff as an opportunity rather than a danger, and are likely expecting a rebound once the short-term sell-off wears off.
Hidden bullish divergence explains whale confidence
That optimism can be attributed to developments on the momentum front. From June 22nd to November 4th, the ETH price made new lows, but the Relative Strength Index (RSI), which measures the strength of buying and selling, made new lows.
This is known as a hidden bullish divergence and usually suggests that the uptrend (June to date) is quietly holding even though the chart looks weak.
If the price sustains above the major support at $3,333, ETH could head towards $3,650 and then $3,994. If the price closes above $3,994, the short-term bearish setup will be broken and the open target will be $4,251 or even $4,762.
However, a decline below $3,050 would confirm the downside impact of the EMA crossover and test the whales’ confidence. However, for that to happen, Ethereum price would need to close below $3,333 each day.
For now, Ethereum’s chart is showing a rare collision and a bearish signal is forming, but the whales are clearly eyeing the next big move.
