Ethereum Price Forecast: Whales Buy Amidst Decline in Staking Balance

Ethereum price is experiencing a decline due to a drop in total staked ETH, contrasting with whale purchasing activity. A failure to maintain support could lead ETH down to $1,522, although whale accumulation may provide some stability. Technical indicators suggest a cautious bearish sentiment as the market watches key support and resistance levels.

Ethereum’s price is currently under strain, reflecting a 2% decline on Tuesday due to a substantial drop in the total value staked, amounting to 120K ETH over five days. In contrast, whale investors have resumed their buying spree, acquiring 320K ETH recently, which could help support the cryptocurrency’s price amidst this sell-off. Should bullish investors fail to maintain the support level of an ascending triangle at $1,600, ETH may face a further decline to around $1,522.

The recent reduction in Ethereum’s total staked value indicates that investors are likely redistributing their assets, with the potential for unstaked tokens to impact market prices negatively. This trend aligns with a notable increase in ETH supply on exchanges—approximately 400K ETH have entered the market since early April—indicating heightened selling pressure. As such, this excess supply could further inhibit the price recovery.

Despite these bearish indicators, Ethereum whales, holding significant quantities of ETH, have shifted from selling to buying, signalling confidence in the asset. These whales collectively purchased 320K ETH in a single day after a previous period of substantial distribution, suggesting that if this trend continues, it may reinforce price support.

The trading environment for Ethereum shows that $34.30 million in futures liquidations were observed recently. The price must maintain the ascending triangle’s support to potentially reach resistance levels around $1,688. Failure to hold this support could see the cryptocurrency decline towards the next support level of $1,412.

In technical analysis, the Relative Strength Index (RSI) and Stochastic Oscillator have recently dipped below neutral levels, indicating a shift towards bearish momentum that may further pressurise prices if not reversed soon. Investors are advised to consider the volatility and emerging patterns in the market before making any decisions regarding their assets, keeping in mind that all investments carry inherent risks.