Ethereum’s recent journey toward a significant resistance level of $2,800 raises concerns as large holders adjust their positions and market momentum wanes.
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ETH faces resistance at $2.8K, where a large cost-basis cluster signals strong sell-side pressure.
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Whale netflows to exchanges surged 193.84% in seven days, hinting at looming profit-taking.
This article explores Ethereum’s near $2,800 resistance, focusing on whale activity and market sentiments impacting future price action.
Ethereum Approaches Crucial Resistance Level
Ethereum [ETH] is now approaching a heavy resistance zone around $2,800, marked by a significant cluster of investor cost basis levels. According to Glassnode, this price area may attract considerable sell-side pressure as investors look to de-risk their holdings at breakeven. At press time, ETH traded at $2,549.98, down 4.59% in the last 24 hours.
While the price surge over the past two weeks caught many off guard, the current proximity to substantial sell pressure indicates that the rally could be running out of fuel. Increased resistance levels amplify the urgency for stakeholders to reconsider their positions.
Source: X/Glassnode
The Rally May Be Losing Fuel
The recent drop in the Exchange Reserve by 3.66% to $48.18 billion indicates reduced selling pressure, a typically bullish sign. However, accompanying this, an Open Interest decline of 4.32% to $16.61 billion presents a mixed sentiment. Traders may be locking in profits or reducing exposure due to the impending resistance near $2,800.
The divergence between decreased reserves and falling Open Interest indicates a hesitance among traders that could serve as a barrier to a breakout beyond current levels.
Source: CryptoQuant
Ethereum: Strategic Exit or Market Bluff?
Data from IntoTheBlock indicates a 193.84% increase in the Large Holder-to-Exchange Netflow Ratio, suggesting that whales are sending ETH back to exchanges, possibly preparing for profit-taking. This behavior often indicates a distribution phase, particularly as prices approach significant resistance.
Despite the 30-day Netflow showing over 450% growth—signifying earlier accumulation—the recent shift in large holder behavior signals a readiness to sell off as ETH approaches critical price levels.
Source: IntoTheBlock
Retail Bulls Dominate the Board, But Are They Overexposed?
In the current market conditions on Binance, ETH Perpetual Long positions represent 84.28% of open accounts, with shorts making up only 15.72%. This Long/Short Ratio of 5.36 indicates a significant bullish bias. However, this one-sided positioning suggests potential vulnerability to market corrections.
If prices cannot rise above resistance, the risk of forced exits from over-leveraged long positions may amplify downward pressure on Ethereum.
Source: CoinGlass
Momentum Fades as ETH Stalls
After facing rejection near the $2,747 mark, ETH retraced to $2,549.98. Although it remains above the 9-day and 21-day EMAs, the Relative Strength Index (RSI) has declined from 71.61 to 63.86, indicating weakening bullish momentum.
Current price action shows hesitance as it consolidates below resistance. If bulls fail to regain momentum and push above $2,800 with adequate volume, a retracement could ensue. Support levels at $2,540 and $2,386 remain intact, providing a buffer against significant downward movements.
Source: TradingView
As Ethereum approaches the $2,800 resistance zone, fluctuations in whale behavior and decreasing Open Interest highlight a cautious but significant market sentiment. Should ETH fail to gain momentum above this critical level, intensified profit-taking could rapidly shift the market dynamics.
