- Whales moved ETH and BTC worth millions of dollars in and out of exchanges.
- ETH’s structure suggested a bullish divergence but a decline could also be imminent.
- BTC may drop to $40,000 as momentum has become bearish.
Bitcoin (BTC) and Ethereum (ETH) were subject to some major whale transactions, Whale Alert disclosed. According to the whale tracking handle, 1,335 BTC was transferred from Coinbase to an unknown wallet on December 30.
But that was not the only transaction involving Bitcoin. A few hours before the above transfer, another whale sent 3,144 BTC to Coinbase.
These two transactions implied that both whales involved were on opposite sides of the divide. While the first one plans to hold, the latter transfer suggests a sell-off. However, it was a different case for ETH.
Around the same period, $33.50 million worth of ETH was transferred into the Coinbase exchange. There was another 9,991 ETH moved into the same exchange hours before the latest one.
An ETH Dump Ahead?
Earlier, Coin Edition reported about an ETH breakout which led the altcoin price above $2,400. The ETH/USD 4-hour chart displayed a bullish structure until December 27. However, the past two days have seen the altcoin confined between $2,292 and $2,379.
The Relative Strength Index (RSI) also showed that the initial price uptrend had weakened. The decreasing reading of the RSI suggests a bearish momentum. If not curtailed, it could lead to a decline below 2,300.
Meanwhile, the RSI had formed higher lows while ETH’s price formed lower highs, indicating a bullish divergence. This disparity implied that a reversal to the upside could be near.
If this remains the case, then ETH’s potential decline might be short-lived. Also, a move toward $2,500 could be next for the coin.
BTC Nears $40,000
Bitcoin’s price action over the last few days has been contrary to the optimism in the market about a potential ETF approval. At press time, the price had dropped below $42,000.
Looking at the 4-hour chart, the MACD showed that the coin’s momentum was bearish. This position made it clear that a drop toward $40,000 could be expected.
On the contrary, if there is an increase in accumulation, a bullish breakout toward $45,000 could be next.
However, the Accumulation/Distribution (A/D) indicator revealed that accumulation has not significantly increased over the last few days. Should this indicator continue to hover around the same zone, then BTC’s dip might be unavoidable.
In the short term, ETH and BTC would most likely experience slight price decreases. However, this does not invalidate a bullish thesis in the foreseeable future.
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