Key Takeaways
James Wynn has opened a long position of 67.5 ETH with 25x leverage. Ethereum’s price action suggests that ETH could reach $4,865 if it clears the $4,475 level.
It seems like Ethereum [ETH] has successfully corrected after reaching an all-time high of $4,956 and now appears to be entering its correction phase.
Interest from whales and traders has skyrocketed, potentially due to its optimistic price action on the four-hour chart.
Ethereum whales and traders’ activity
Recently, a prominent crypto expert shared a post on X, where it appears that crypto whales have shown a strong interest in Ethereum.
In the post, the expert shared that crypto whales have purchased 260,000 ETH over the past 24 hours.
Source: X (Formerly Twitter)
Not just that, but well-followed crypto trader James Wynn has also returned to the market by opening a long position of 67.5 ETH worth $290K with 25x leverage.
He has placed liquidity at the $4,205.2 level, which suggests that James believes ETH’s price won’t fall below this level.
However, this notable accumulation by whales has positively impacted ETH’s price, which has recovered from $4,240 to the current level.
At press time, Ethereum is still down 1.75% over the past 24 hours but remains strong at $4,405.
With its strong recovery, traders and investors have shown notable interest in the asset, resulting in an 8% surge in trading volume during the same period.
Looking at these accumulation numbers and the impressive recovery, you might feel this is the right time to buy, or wonder if ETH will face further correction ahead.
Ethereum price action and upcoming levels
According to AMBCrypto’s technical analysis, Ethereum appears to be forming a bullish pattern on the four-hour chart and is poised for a breakout.
The chart shows that ETH has formed a descending triangle pattern, with the price now approaching the narrow zone of this formation.
Source: TradingView
Based on recent price action, if Ethereum breaks out of this pattern and closes a four-hour candle above the $4,470 level, it could pave the way for a notable 10% price jump.
If this occurs, the asset could not only retest its all-time high, but also potentially set a new one.
At present, the 15-day and 21-day Exponential Moving Averages (EMA) are acting as strong resistance levels, with the price currently hovering below them. A move above these levels could trigger a bullish breakout.
Bearish on-chain metrics
Despite Ethereum’s bullish outlook, it seems that investors and intraday traders are betting on the opposite side.
Data from the on-chain analytics tool CoinGlass revealed that traders were currently over-leveraged at the $4,353.1 level on the lower side and $4,442 on the upper side.
These levels also serve as major liquidation points, where traders have built $235.26 million worth of long positions and $720.41 million worth of short positions.
So, traders with a bearish outlook are currently dominating.
Source: CoinGlass
Investors, on the other hand, were found offloading their ETH holdings.
Coinglass’ Spot Inflow/Outflow data revealed that over $88 million worth of ETH has moved onto exchanges in the past 24 hours, suggesting potential profit-taking after the recent price recovery.
However, this offloading remained far lower than the accumulation made by whales over the past 24 hours.
