Ethereum (ETH) Price Analysis Amid Whale Activity

Fresh institutional deposits into exchanges like Coinbase, a sign of upcoming market sell-offs, were observed on Monday, as Fidelity transferred 31,249 ETH ($103.55 million) to the exchange.

The final 20 minutes of the day saw a large deposit of 11,250 ETH ($36.9 million) out of the total, according to on-chain data. The institutional deposits, especially large transfers, usually hint at more selling pressure to come, driving down the prices.

These concerns are only amplified by Fidelity's recent activity, especially given the market's vulnerability at the moment. An increase in Coinbase trading activity could also be linked to the Ethereum inflows, indicating that institutions might be preparing to sell their holdings or carry out large transactions.

Prices tend to face additional downward pressure when there's an increase in exchange supply without a corresponding demand.

ETH price was seen forming a bearish candlestick pattern, known as the head & shoulder pattern, at press time. However, the right shoulder of the pattern is yet to form, which will precede a bearish trend.

According to the technicals, the ETH price is seen losing the support level of $3.3K. If the price sustains below the 200-day EMA, it can anticipate strong selling pressure.

The price might nosedive to the critical support level of $2K during this cycle if the sellers remain dominant.

On the other hand, if the 200-day EMA provides support to the price, it could present a buying opportunity. If the price forms any bullish candlestick patterns, it might gain bullish momentum. A decent bull rally could be observed once the price breaks above the 20-day EMA.