Ether could extend gains despite whale selling pressure

Bitcoin (BTC), Ethereum ETH, and Ripple (XRP) are currently trading around key levels on Monday after surging nearly 5%, 2%, and 6%, respectively, in the previous week. 

Bitcoin has dropped below $81,000, while Ether closed last week’s candle above the key resistance level.

This could allow ETH to record further gains over the next few hours and days despite whale selling pressure.

Whales unload some Ether

Ether is trading above the $2,300 level on Monday after closing the weekly candle above a key resistance level.

The smart money tracker EmberCN revealed over the weekend that a key Bitcoin OG, Garrett Jin, who also holds a large ETH balance, transferred another 78K ETH to the crypto exchange Binance on Friday.

The whale had previously moved 166K ETH to the exchange on Wednesday, bringing its potential sales to 244K ETH during a 3-day period.

Ether briefly dipped following the sale to $2,277 but has since bounced back and is now trading above $2,330.

The whale is known for timing the October 10 leverage flush after building a massive $1.1 billion short position.

However, the whale suffered a $378 million loss from several long positions in January.

In addition to that, several notable whale wallets have increased deposits to exchanges in recent days. 

On the institutional side, US spot ETH exchange-traded funds continued their inflow on Friday after recording $103.5 million in net outflows on Thursday.

CryptoQuant’s latest report revealed that institutional capital is showing a preference for Bitcoin over Ethereum at the moment.

Since the market bottom in February, institutions have purchased 92,116 BTC, while only buying 127,000 ETH. 

The report added that, "During periods of uncertainty, many funds appear more willing to reduce ETH exposure first, while maintaining or rebuilding BTC positions as the 'safer' crypto allocation."

However, bearish positioning in ETH perpetuals continues to weigh on prices, with funding rates showing a short dominance in the market. 

Ether price forecast: ETH could extend gains if the 200-day EMA holds

Ethereum is trading above $2,330 on Monday as the ETH/USD 4-hour chart remains bearish and efficient, as per data from crypto trading apps.

ETH is holding its price above the 50-day and 100-day EMAs at roughly $2,275 and $2,342, suggesting a cautiously constructive tone.

However, the broader trend remains capped below the 200-day EMA near $2,549. 

The RSI on the 4-hour chart reads 52,  hinting at mild bullish momentum.

Meanwhile, the MACD remains slightly below zero, suggesting that upside traction is still tentative despite the recent stabilization.

If the rally continues, the bulls would encounter initial resistance at the 38.2% Fibonacci retracement of the broader downswing near $2,380.

A break above this level would expose the more significant barrier at the 200-day EMA around $2,549. 

However, if the sellers triumph, buyers would need to protect the  50-day EMA near $2,275.

A daily candle close below this level would bring the next major support at roughly $2,138 into focus.