A technical trader who predicted Ethereum’s most recent price pullback says the asset has a lot more room to fall in the short term.
The pseudonymous analyst, who goes by the name of CJ, has updated his chart that initially projected Ethereum’s current tumble back on August 21st.
ETH, the second largest cryptocurrency by market capitalization, is trading at $351.20 at time of writing, down from about $480 at the beginning of September, according to CoinMarketCap.
CJ says it could slip below $300 before reversing course and taking off.
“ETH – So far so good. Levels holding well. Potential further drop to $270 but I have that pegged as an epic buy/not expecting much lower. We are in buy-the-dip territory as per last update. Looking forward to the next [pump].”
Researchers are also tracking interesting whale behavior that accompanied Ethereum’s recent price drop.
The crypto analytics firm Santiment reports that Ethereum’s top 100 exchange addresses decreased their tokens held from 16.92 million to 15.89 million in the week leading up to September 5th. That 6.1% drop suggests whales were selling in large numbers, which “almost certainly” led to the price decline, according to the crypto analytics firm.
After September 5th, Santiment says its holder distribution chart shows 68 new whale addresses containing between 1K to 10K ETH were created as the price was falling, a sign that wealthy investors bought the dip.