- Ethereum price remains contained inside an ascending broadening wedge pattern.
- The digital asset faces a lot of selling pressure in the short-term.
- Whales have been selling a lot of ETH in the past week.
Ethereum had a significant rebound from a critical support level on the 12-hour chart touching $1,877 on March 10. However, on-chain metrics suggest that the smart-contracts giant could be facing a significant correction soon.
Ethereum price at risk of a drop to $1,500
On the 12-hour chart, the TD Sequential indicator has presented a sell signal which could push Ethereum price down to the lower trendline of the ascending broadening wedge pattern at $1,500.
ETH/USD 12-hour chart
Additionally, the number of whales holding between 100,000 and 1,000,000 coins ($180,000,000 and $1,800,000,000) has decreased significantly from 157 on March 1 to 148 currently.
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ETH Holders Distribution chart
The number of Ethereum coins locked inside DeFi protocols also decreased in the past week from 8.88 million to 8.68 million but the sum inside exchanges continues to decrease, which is a bullish factor.
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ETH Supply on Exchanges
To invalidate the sell signal presented by the TD Sequential indicator, bulls must push ETH above $1,877 with a 12-hour candlestick close. This would drive Ethereum price towards the upper trendline of the pattern at $2,300.