Whales are making waves in the Ethereum (ETH) market, signaling renewed interest amidst fluctuating price dynamics.
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Traders appear over-leveraged with support at $2,466 and resistance capped at $2,612.
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If Ethereum fails to breach the critical resistance level of $2,700, a potential drop of 15% looms on the horizon.
Following a recent surge to the crucial resistance mark of $2,700, the second-largest cryptocurrency by market capitalization, Ethereum (ETH), has caught the attention of large investors and whales. However, the previously bullish sentiment saw a decline as dormant wallets surfaced, leading to significant sell-offs.
A dump worth millions in ETH!
According to Onchain Lens, a blockchain transaction tracker, an Ethereum whale wallet associated with an Initial Coin Offering (ICO) unstaked 10,195 ETH, valued at approximately $25.67 million, and transferred these tokens to Kraken.
This particular wallet had remained inactive for three years before executing this sizeable unstaking and sell-off. The wallet had initially received 50,000 ETH, amounting to $15,550 during the ICO phase.
Additionally, another dormant wallet, inactive for eight years, has recently deposited 1,764 ETH (worth $4.4 million) into Kraken, realizing a profit exceeding $3.93 million. This wallet had initially obtained the ETH for just $469,000 from Bitfinex eight years ago.
These substantial deposits from long-inactive wallets have sparked curiosity regarding whether these whales anticipate a price drop or are merely reacting to prevailing market conditions.
$1.02 billion worth of long bets
Despite the recent sell-offs, day traders maintain a bullish outlook for ETH, as highlighted by on-chain analytics platform Coinglass.
Current data indicates that traders are heavily leveraged, establishing support at $2,466 and resistance at $2,612.
At these price levels, traders have amassed an impressive $1.02 billion in long positions against $192.57 million in short positions. This disparity suggests a bullish sentiment, signaling confidence that ETH won’t drop below the $2,466 threshold in the near future.
Source: Coinglass
Analyzing these data points reveals mixed sentiment among traders and whales alike.
At the time of writing, ETH is trading at approximately $2,580, marking a 3.5% increase over the past 24 hours. Concurrently, trading volume surged by 20%, highlighting heightened market engagement compared to the prior day.
Ethereum (ETH) price action and key levels
Technical analysis conducted by COINOTAG points to a potential test of the $2,700 resistance level for Ethereum. This level has historically proven to be a barrier, consistently acting as selling pressure since early 2024.
Source: Trading View
History suggests that when ETH reaches this price point, it often experiences a reverse unless it can successfully close above the $2,800 level. Analysts predict a similar outcome this time around.
If prevailing market sentiment remains constant and ETH fails to close a daily candle above $2,800, a significant price drop of up to 15% could occur, potentially sending ETH down to the $2,200 level.
Conversely, if Ethereum breaks through the $2,700 resistance and sustains a daily close above $2,800, it may pave the way for a significant rally towards $4,000 in the coming weeks.
Conclusion
The current movements within the Ethereum market reflect a complex interplay of factors influencing trader sentiment and whale behavior. As Ethereum approaches critical price levels, observers anticipate significant decisions that could shape its trajectory. Understanding these dynamics will be crucial for stakeholders as they navigate the evolving crypto landscape.
