Like most altcoins, Ethereum (ETH) has seen its price succumb to the negative market sentiment in recent weeks. This unfavorable market condition has consistently caused the second-largest cryptocurrency to trade beneath the $1,700 level.
Using data from the blockchain analytics platform IntoTheBlock, Martinez’s projection revolves around the purchasing areas where most investors acquire ETH. According to the analytics platform, the price zones beneath the range of $1,633 to $1,681 are “weak purchasing areas,” which hint at weak support.
IntoTheBlock data shows few investors bought ETH beneath this level – down to the $1,385 price range. This ultimately implies that the support is thin around those levels – as indicated by the small size of the green circles in the image above.
With weaker support at the lower price ranges, the Ethereum price might be unable to stay afloat should bearish pressure increase. This explains why crypto analyst Ali Martinez believes the ETH price beneath $1,680 is a source of concern for traders.
Meanwhile, the significant percentage of holders currently at a loss exacerbates this risk. Some ETH investors may choose to sell their assets to cut their losses, which could trigger downward pressure on the cryptocurrency’s price.
On Tuesday, the 5th of September, the analytics platform revealed that the whale deposited $36 million USDC on Binance and withdrew 9,819 ETH (worth $15.9 million at the time).
Subsequently, the whale withdrew 9,689 ETH (worth $15.8 million) from Binance on Wednesday, bringing their total purchase to 19,506 ETH (equivalent to $32 million).
Typically, when large amounts of cryptocurrencies are moved out of centralized exchanges, it indicates that whales are accumulating – and sometimes anticipating a price rally.
Hence, this latest transaction suggests that the whale is expecting a bounce. However, it is worth noting that the price of Ethereum has not changed in the past day.