The market has experienced a strong recovery since morning, driven by increased anticipation of a spot Bitcoin ETF, sending Bitcoin to a new 2023 peak of $38,500. However, Ethereum hasn’t attained this surge, even struggling to approach the psychological level of $2,100. Surprisingly, Ethereum’s price chart is currently showing a mixed pattern, suggesting the possibility of an upcoming breakout.
Whales Build Profit-Taking Sentiment
In recent hours, Ethereum’s price has been on an upward trend, but this increase has also sparked a rise in profit-taking behavior, particularly among ‘whales’. Today, an Ethereum wallet from the ICO era transferred 3,000 ETH, valued at $6.19 million, to the Kraken exchange.
This early investor, who originally acquired 20,000 ETH for just $6,200 during Ethereum’s initial coin offering, has seen an extraordinary return. With Ethereum’s current trading price at $2,055, this investor realized a profit exceeding 660,000% from this transaction alone, as reported by SpotOnChain.
Such a significant sell-off could potentially create bearish pressure for Ethereum, especially near its resistance level. Moreover, CryptoQuant’s data indicates a reduction in outflows, as this metric recently hit a one-month low. Lower outflows are seen as bearish because they imply that fewer holdings are being withdrawn from exchanges, thereby increasing the reserves and the likelihood of selling.
Additionally, large transactions have now doubled as the metric jumped from $1.7 billion to $3.6 billion in 24 hours. This suggests an increase in whale activity amid ETH’s price recovery, which might once again trigger a correction. Amid this, the taker buy sell ratio is declining as it now trades at 0.98. The taker buy-sell ratio is the ratio of buy volume divided by the sell volume of takers in perpetual swap markets.
A value under 1 indicates that the sell volume from market takers is exceeding the buy volume, signifying an increasing interest in a price decline.
What’s Next For ETH Price?
Ether approached the key resistance level of $2,100 recently, but failed to breach it, possibly leading to profit-taking, as indicated by the long wick on that day’s candlestick. Holders are currently booking their profit near $2,075. As of writing, ETH price trades at $2,047, surging over 0.4% from yesterday’s rate.
Currently, the bears are attempting to push Ether’s price way below the 20-day Exponential Moving Average (EMA) of $2,046. If successful, the ETH price might drop below the trend line at $1,985. Falling below this level could complete a double-top pattern, potentially triggering a more significant correction towards $1,850. However, buyers will strongly defend a decline below $1,900.
Conversely, if the price holds its momentum above 20-day EMA, it would imply that buyers are still drawn to lower prices, possibly driving the price towards the overhead resistance zone between $2,138 and $2,188. To establish a significant ascending triangle pattern, buyers will need to overcome this resistance zone.
