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Ethereum is on the verge of testing a critical resistance level at $2,330, with whale exits and declining fees causing caution among traders.
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Over 6.28 million ETH are consolidated between $2,295 and $2,350, creating a significant resistance area that could impede further upward movement.
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As stated by COINOTAG sources, “A breakout above this area would not only flip key resistance into support but also signal renewed confidence among sidelined participants.”
Ethereum is grappling with a $2,330 resistance, as whale activity wanes and fees plummet, prompting cautious optimism among retail investors.
Whale Activity Recedes Amid Network Slowdown
Recent data suggests that Ethereum’s on-chain metrics are reflecting a cautious sentiment among investors. Total transaction fees have plunged by 56.31% in the past week, signaling reduced demand and hampered usage across the Ethereum network.
In parallel, whale participation has diminished, with net flows from large holders seeing a dramatic 49.74% drop over the same timeframe. This decrease of over 447.53% month-over-month may indicate a cautious stance from institutional investors, which could diminish Ethereum’s potential for a breakout.
Source: IntoTheBlock
While the exodus of ETH from centralized exchanges exists, the absence of whale accumulation constraints any upward price movement. In a landscape characterized by low transaction activity, Ethereum’s recovery attempts may struggle without increased institutional involvement.
Price Action Remains Constrained Despite Signs of Recovery
After a period of consistent decline, Ethereum has exhibited early signs of recovery, increasing by 3.62% in the last 24 hours to trade at approximately $1,647.83 at press time. The price has convincingly bounced off the $1,385 support level and is testing resistance within the $1,650–$1,703 range.
Nonetheless, Ethereum remains within a descending parallel channel, limiting its recovery endeavors. A confirmed breakout above the $1,703 resistance would not only invalidate the prevailing bearish structure but also potentially initiate a rally towards the formidable $2,330 mark.
Source: TradingView
Investor Sentiment Remains Stable Amid Cautious Optimism
Despite prevailing uncertainties, some indicators reveal a cautiously optimistic sentiment within the retail investor sphere. Exchange netflows have reported weekly outflows of 29,948 ETH, which equates to a 1.96% decrease in overall balances on trading platforms.
This trend suggests that retail traders are increasingly holding on to their assets, anticipating potential future upward movement rather than immediate sell-offs. However, the overall sentiment remains mixed, with retail enthusiasm yet to receive backing from institutional players or a surge in network utilization.
Source: CryptoQuant
Conclusion
In summary, while Ethereum’s resistance at $2,330 remains a significant hurdle, recent data points to a market characterized by cautious optimism among retail investors. Nonetheless, the lack of whale participation and subdued activity levels suggest that any upward momentum may be challenging to sustain in the immediate future. Until Ethereum manages to reclaim $1,703 decisively and engages more actively on-chain, traders will likely continue to face obstacles at the $2,330 supply wall.
