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Ethereum (ETH) Eight-Day Rally Halts as Overbought Signals Trigger Correction Risk
Ethereum (ETH) has wrapped up an eight-day bullish streak as technical indicators reveal overbought market conditions. Profit-taking by whale investors has added to the potential for an impending price correction, prompting a pullback in momentum.
Whale Wallet ‘0x8C08’ Achieves 38% Profit, Partial ETH Sale Recorded
On October 22 (local time), Cointelegraph reported that the Ethereum address labeled ‘0x8C08,’ analyzed via on-chain tracking tool Lookonchain, offloaded 8,005 ETH valued at approximately $30.03 million (equivalent to roughly 41.6 billion KRW). The sale occurred at an average price of $3,751 per ETH.
Two weeks prior, the same whale had purchased 9,582 ETH for an average price of $2,725 per token, totaling an investment of $26.11 million (around 36.2 billion KRW). The sale netted a profit of $9.87 million (around 13.7 billion KRW), equating to an impressive 38% return in just 14 days.
Despite this sizable sale, the wallet still retains 1,577 ETH, holdings valued at roughly $5.96 million (approximately 8.3 billion KRW). This reserved amount indicates that the investor has opted for a partial exit, potentially signaling that they anticipate further bullish momentum for Ethereum in the near term.
Whales Lock In Gains While Long-Term Holders Maintain Conviction
Glassnode's latest "Cost Basis Distribution Heatmap" reveals extensive buying activity in the $2,520 price range earlier this month. However, more recent on-chain data shows a moderation in demand at these levels, reflective of whales locking in profits.
Nevertheless, wallets that accumulated ETH close to the $2,520 range still collectively hold more than 2 million ETH. This indicates that the majority of long-term investors remain steadfast in holding their positions rather than selling.
Glassnode analysts commented, “While whales are taking advantage of market strength to lock in profits, fresh demand continues to absorb selling pressure. This demonstrates a high level of confidence in Ethereum’s long-term growth prospects—more accumulation than distribution is occurring.”
Technical Indicators Suggest ETH Correction, $3,000 Remains Key Support
Ethereum’s eight-day rally caused its 14-day Relative Strength Index (RSI) to spike to 78, denoting an overbought condition. Similar overbought RSI levels observed in late May led to an 18.6% correction, suggesting that ETH may face a comparable short-term price retracement.
Already, ETH has pulled back from its recent peak of $3,800, signaling the start of a technical correction. Current price action hints at ETH potentially declining toward the $3,000–$3,200 range. This zone coincides with Ethereum's 20-day Exponential Moving Average (EMA), representing a vital support level for the asset.
Despite the pullback, ETH remains well above its multi-year upward trend line, which keeps the structural uptrend intact. Analysts suggest that after some period of consolidation within the projected $3,000–$3,200 range, ETH could resume its upward trajectory. If momentum gathers strength, Ethereum may pierce the $3,800–$4,100 resistance area, with some projections anticipating a staggering climb toward $8,000 in the coming months.
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