Whale Engagement with Ethereum Declines, Putting Pressure on Buyers
Despite Bitcoin’s impressive price surge, Ethereum is seeing a decline in whale engagement, with key metrics showing reduced interest. This decrease in whale activity has the potential to impact Ethereum’s price volatility, adding additional pressure on buyers.
Currently trading at $3,550, Ethereum has seen a surge of over 2.5% from yesterday’s rate. As Bitcoin’s price surpasses $67,000, more investors are turning their attention to altcoins, anticipating further gains. The current market trends are favoring buyers, and Ethereum is holding steady above the $3,500 level.
However, despite the positive price movement, there is a noticeable decrease in whale engagement with Ethereum. This declining interest from large investors could signal a reduction in market volatility and place pressure on investors to stabilize the price within a specific resistance area.
On the upside, approximately 100 million ETH addresses are currently profitable, accounting for nearly 90% of all holders. This could boost confidence among buyers and potentially attract more investors to acquire ETH in response to the positive market sentiment.
While Ethereum experienced some selling pressure around the $3,600 mark, the lack of a significant pullback indicates that traders are buying during slight declines. This demonstrates a strong buying dominance for ETH near resistance zones. As of now, Ethereum is trading at $3,550, showing a surge of over 2.5% from yesterday’s rate.
Bullish traders in the market are making attempts to break through the strong resistance at $3,600. If successful, the ETH/USDT trading pair could initiate a new upward movement, potentially reaching $4,000 and then consolidating around $4,200.
The moving averages‘ upward trend suggests that market momentum is in favor of the bulls. However, caution is advised as the Relative Strength Index (RSI) remains in overbought territory for an extended period, posing the risk of a temporary retracement. Immediate support levels can be found at $3,370, followed by the crucial $3,000 level.
Analyst comment
Neutral news.
As an analyst, the declining whale engagement with Ethereum may put pressure on buyers and impact price volatility. However, the current market trends and high profitability of ETH addresses could boost confidence among buyers. There is a possibility of a correction due to market overheating, but the lack of significant pullback and strong buying dominance near resistance zones indicate a bullish sentiment. Successful breaking through the $3,600 resistance could lead to a new upward movement towards $4,000 and consolidation around $4,200. Caution is advised due to the overbought RSI and support levels are at $3,370 and $3,000.
