![Ether Whales’ Offloading Sparks Concerns of Asset’s Price Trajectory ⋆ ZyCrypto Ether Whales’ Offloading Sparks Concerns of Asset’s Price Trajectory ⋆ ZyCrypto](https://zycrypto.com/wp-content/uploads/2022/08/The-Flippening-Why-Market-Pundits-Say-Ethereum-Is-Set-To-Become-The-No.-1-Cryptocurrency.jpg)
 
 
Ethereum continued to trade in the volatile waters of the cryptocurrency market last week, with a deeper analysis revealing that some big players may be offloading their bags.
For most of last month, the second largest cryptocurrency by market capitalization traded around $1,600, reflecting weeklong fluctuations after a sudden drop earlier this month that left investors and analysts questioning its immediate trajectory.
Notably, the actions of Ethereum whales or entities that possess substantial quantities of the cryptocurrency have prompted both intrigue and apprehension within the crypto community.
Over the weekend, renowned crypto analyst Ali Martinez took to Twitter to share his insights. In a tweet, he highlighted a compelling correlation between the number of whales holding 10,000 or more ETH and the overall price movement of the asset.
“Notice the strong correlation between the number of whales holding 10,000+ ETH and its price trajectory. If seasoned investors are offloading, it prompts the question: Is now the right time to buy or to short ETH?” wrote Martinez.
Martinez’s observation underlines these significant holders’ influence over Ethereum’s market dynamics. Martinez went on to make a compelling remark, saying, “I’ll be watching these whales closely before I buy ETH!”
The decision of established investors to liquidate portions of their holdings raises concerns about a potential downward trajectory. Yet, it also opens doors for those seeking strategic entry points into the market.
Notably, the analyst’s sentiments appear to have influenced his trading strategy. In a separate tweet, Martinez revealed another noteworthy metric in the cryptocurrency realm: the Ethereum MVRV Ratio.
Compared to the 180-day Simple Moving Average (SMA), this ratio offers insights into broader market trends. The MVRV Ratio surpassing the 180-day SMA historically indicates macro uptrends, while a ratio below suggests potential downtrends. Martinez shared an image showing the recent decline in ETH’s price led to the MVRV Ratio dipping beneath the 180-day SMA, raising caution flags for bullish investors.
That said, Ethereum’s ongoing battle to breach the $1,700 resistance has intensified the focus on the critical $1,630 support level. Should this level be breached, the price could plunge toward approximately $1,440, a threshold aligned with a significant daily support trend line.
Conversely, a successful close above the $1,700 mark could propel Ethereum’s value beyond the $2,000 milestone. On the other hand, Ethereum’s price continues to perch above the ascending 200-week moving average, while a bottoming-out of the daily RSI introduces a hidden bullish divergence, albeit with prudent caution.