Ethereum has been making significant strides in the market, showing strong buying interest and breaking through key resistance levels. Its market dominance has been growing, especially with Bitcoin bouncing back above $85,000. Several on-chain indicators are pointing towards positive signs, indicating a bullish momentum for Ethereum as it approaches a descending resistance line. However, a recent drop in whale interest could potentially alter the forecast.
Ethereum has witnessed a decline in large transaction volumes recently. Despite a 6% increase in price over the past week, data from Coinglass reveals that about $82.8 million worth of Ethereum trading positions were liquidated, resulting in losses for buyers and sellers alike. Additionally, the number of wallets holding at least $1 million worth of ETH has dropped significantly this year, indicating a decrease in interest from wealthier investors.
According to IntoTheBlock data, the volume of large Ethereum transactions has also seen a significant decrease, with whale activity dropping from $9.81 billion to $2.75 billion. This decline in interest from big investors is further supported by recent activities, such as a whale moving 20,000 ETH to the Kraken exchange for selling purposes.
Furthermore, an on-chain analyst reported that an early investor from Ethereum’s 2015 ICO has been consistently selling ETH. This investor sold 632 ETH, valued at around $1 million, on April 13. Market sentiment remains mixed, with Ethereum’s open interest dropping by 1.16% to $17.91 billion, potentially slowing down the coin’s recovery and increasing the likelihood of a short-term pullback.
In terms of price action, Ethereum has managed to bounce back from the key $1,500 level, with buyers aiming to maintain the price above a descending resistance line to strengthen the current bullish momentum. Currently trading around $1,640, up more than 2% in the past 24 hours, Ethereum’s moving averages are pointing upwards, and the RSI is in positive territory, indicating that buyers have the upper hand.
If buyers can sustain the price above the descending resistance line, Ethereum could see a strong move towards the crucial $2,000 level in the near future. Conversely, if sellers manage to push the price below the EMA20 trend line, Ethereum could drop towards $1,384, a significant support level. A break below that level could signal a shift in momentum in favor of the bears.
In conclusion, while Ethereum has shown resilience and bullish momentum in recent times, the drop in whale interest and mixed market sentiment could impact its future price movements. Traders and investors should closely monitor key support and resistance levels to navigate the current market conditions effectively.