Mapping Ethereum’s predictions as price nears $2.3K support level

• A metric suggested that Ethereum’s price was undervalued. 
• Ethereum had a strong support level near the $2,300 mark. 

Ethereum’s [ETH] witnessed a price correction over the last few days as its value plummeted under the $2,400 mark.

Though this might have raised concerns among investors, a whale took this opportunity to stockpile more ETH before it gained bullish momentum once again. 

Ethereum whales tapped the opportunity

The last week was a bloodbath for Ethereum, as it shed a lot of its value. The week started with ETH’s value going above $2,600, but things turned bearish soon.

According to CoinMarketCap, ETH was down by more than 7% in the last seven days. At the time of writing, ETH was trading at $2,346.75 with a market capitalization of over $282 billion.

While the token’s value plummeted, whales used this as an opportunity to stockpile more ETH. Lookonchain recently posted a tweet highlighting this incident.

As per the tweet, whales accumulated a total of 26,841 ETH, which was worth over $64.5 million.

Whales are accumulating $ETH today, with a total of 26,841 $ETH($64.5M).

0x55C1 withdrew 7,779 $ETH($18.7M) from #Binance 2 hours ago.https://t.co/k5s2t0kKec

0xDa17 and 0x278f (possibly the same person) withdrew 8,077 $ETH ($19.4M) from #Bitfinex.https://t.co/CyfU4ZMcV8… pic.twitter.com/YDJqpeTLTU

— Lookonchain (@lookonchain) January 22, 2024

To double-check this trend, AMBCrypto took a look at Santiment’s data. Our analysis revealed that whale activity around ETH increased last week as its Whale Transaction Count spiked.

The supply held by the top addresses also went up, indicating high accumulation.

Source: Santiment

The broader market also seemed to have been accumulating more ETH while its price remained low.

This was evident from the fact that ETH’s Supply on Exchanges dropped, while its Supply outside of Exchanges increased in the last week.

This might have been the right time to accumulate ETH before its price takes off.

AMBCrypto’s look at Glassnode’s data revealed that ETH’s Network Value to Transactions (NVT) ratio declined sharply on the 21st of January.

Whenever the metric drops, it means that the asset is undervalued, hinting at a trend reversal for Ethereum.

Source: Glassnode

Ethereum to begin a bull rally soon?

To understand whether Ethereum would begin a rally in the coming days, we checked its liquidation levels. As per our analysis, ETH has a strong support zone near the $2,300 mark.

Therefore, it won’t be surprising to see ETH touch that level before it regains bullish momentum.

Source: Hyblock Capital

Read Ethereum’s [ETH] Price Prediction 2024-25

Ethereum’s MACD displayed a clear bearish upper hand in the market at press time.

Its Money Flow Index (MFI) also registered a downtick, suggesting that the possibility of ETH touching $2,300 before starting a bull rally was high.

Source: TradingView