Ethereum News Today: Whales Stake $1B as ETH Faces Key Test Below $3,500

September Correction Could Send ETH Back to $3,500: Analyst

Ethereum (ETH) is expected to experience a significant pullback, potentially retreating to as low as $3,500, according to Benjamin Cowen, a prominent cryptocurrency analyst. His prediction is based on historical market patterns and recent price action, which suggest a retracement to the 21-week exponential moving average (EMA). The 21W EMA has historically served as a key support level for ETH and is currently positioned below $3,500.

Cowen argues that the recent rally, which saw Ethereum surpass previous all-time highs in August, is likely to be followed by a correction in line with a pattern he has been highlighting since April. Despite the short-term setback, he believes this pullback is a normal part of a broader bullish trend, with the potential for ETH to regain momentum after finding support at the 21W EMA.

The cryptocurrency’s bullish momentum has begun to wane, with the price currently trading just below $4,400. U.Today reports that Ethereum was on track to record its strongest third quarter performance to date, surpassing the gains seen during the 2020 “DeFi summer.” However, this rally has stalled, raising concerns about near-term volatility.

A key factor influencing market sentiment is the recent activity from large investors, or “whales.” One whale has recently acquired and staked $3.5 billion worth of ETH, with a single purchase totaling $1 billion. These movements suggest strong institutional interest and potential for further price stability in the long run, despite the short-term bearish outlook.

In addition to whale activity, significant inflows into spot Ethereum ETFs have also been observed. According to data from Glassnode, these products added 286,000 ETH tokens in the previous week alone. While this could provide a counterbalance to the expected correction, it remains to be seen whether these inflows will be enough to prevent a decline toward $3,500.

Cowen also warned that a potential false breakout toward $4,900 could occur as early as the current week, creating a short-term trap for bullish traders. If this scenario unfolds, it could further pressure the price before a longer-term correction to the 21W EMA takes hold.

Source: [1] 'A Lot of People Will Get Upset': ETH Predicted to Collapse Below $3,500 (https://u.today/a-lot-of-people-will-get-upset-eth-predicted-to-collapse-below-3500)