Ethereum (ETH) Price Hints at a Morning Star Pattern as Whales Dump 143k Coins

Ethereum (ETH) trading at $1592 is struggling to make a bullish comeback. Currently trading with an intraday recovery of 1%, the ETH price

Ethereum price is struggling to stage a bullish comeback as it grapples with a crucial technical level and crypto whales continue to offload their holdings.

As the cryptocurrency market continues to navigate a turbulent landscape, the price action of Ethereum (ETH) remains a subject of keen interest among traders and analysts alike.

With the world's second-largest cryptocurrency currently trading at $1,592, it appears to be struggling to recover from recent losses and break out of a key technical indicator.

As the morning session progresses, Ethereum has shown signs of an intrada recovery of 1%. This minimal rebound keeps the ETH price circling to bounce off $1,542.

While the price action hints at a potential morning sharp pattern, the multiple bullish failures to surpass the 20-day EMA line keep the bearish flow intact.

Amid such crypto market conditions, is a breakout rally possible to the $2,000 psychological mark?

Ethereum Price Analysis: A Deeper Dive

In the daily chart, the ETH price trend showcases a bullish failure to bounce back within a falling channel pattern. Currently, it is maintaining a sideways shift slightly below the $1,600 mark.

However, since early February, the ETH price trend has failed to regain dominance above the 20-day EMA line. Thus, the declining average line is acting as a dynamic resistance.

Yet, the short-term sideways shift results in a positive crossover in the MACD and signal lines. This hints at a potential bullish turnaround for ETH.

Furthermore, the current price action in ETH showcases the possibility of a morning star pattern. If the morning star pattern leads to the breakout of the 20-day EMA line, the uptrend in ETH could scale to a new upswing.

Based on the daily chart, the declining 50-day EMA line close to the $2,000 psychological mark seems to be the immediate price target.

Moreover, it ranges close to the overhead resistance trend line.

In case of a channel breakout, the uptrend could scale to the 200-day EMA line close to the $2600 level. On the flip side, a breakdown below $1,500 will prolong the declining trend, potentially retesting the $1,143 support level.

Crypto Analyst Highlights Key Support Zone As Whales Continue Offloading

As Ethereum stands at the crossroads, Ali Martinez, an independent crypto analyst, has highlighted multiple developments over the past 24 hours.

Firstly, the analyst highlights a massive offloading spree by crypto whales in the last week. This is reflected by the crypto whales offloading 143k ETH in the last 7 days.

This has plunged the balance by holder value of whales from 9.4325 million to 9.2894 million.

Martinez further notes that despite the selling pressure from whales, there is a stronger demand zone for Ethereum, which ranges from $1,528 to $1,576. This holds 4.82 million ETH in 2.61 million addresses.

Hence, the short-term offloading spree by the crypto whales is bound to witness a stronger demand zone, potentially absorbing the incoming supply.

Network Slowdown Hits Record Lows

In other relevant news, on-chain data platform Santiment has pointed out a new record low for Ethereum.

As per the latest data from Santiment, Ethereum has reached the lowest average network fees in the last five years. This reflects a massive network slowdown for Ethereum due to declining demand.

At present, the cost of a single transaction on the Ethereum blockchain is $0.168. This marks the lowest price since May 2, 2020, when it cost $0.17 for a single transaction.

As the demand declines, the market price of Ethereum is likely to witness a new swing low.