While the Ethereum price has been trying to hold on to important support areas recently, it has entered a period where the technical structure and on-chain data indicate high volatility in the short term. While prices are hovering between 2,100 and 2,200 dollars, it is observed that they remain above this critical zone, although short-term weakness is observed.
Major resistance line and price action in technical view
Ethereum continues to be affected by a broader downtrend since the past months. In particular, bottom-up recoveries are constantly limited by the main downtrend line, creating significant resistance to price increases.
In recent weeks, the price has stabilized above the strong support zone between $1,800 and $2,000. Having recovered from this level, Ethereum seems to have reached a point with a breakout potential, currently touching the main trend line between $2,200 and $2,255. If the price breaks above this trend line, the $2,500 and then $2,700 areas will emerge as new resistance areas.
Although the upward breakout is not yet certain, the compression in the technical structure and the increasing interest of buyers are being closely monitored in the market.
On-chain whale and individual investor movements
On-chain analysis suggests a striking separation between large investors and small investors. Large-scale wallets have recently increased their positions and stood out on the buying side in the price squeeze.
In contrast, retail investors often take positions late and more cautiously, while whale behavior continues to be decisive in terms of market direction. In previous periods, similar divergences were the precursor to active and rapid price changes.
Analysis emphasizes that changes in this unbalanced structure of the market can lead to a sudden increase in volatility.
Contraction in liquid supply and short-term sales pressure
Approximately 32 percent of the Ethereum supply, or 38.5 million ETH, is currently staked and locked. This increasing rate further reduces the liquid supply in the market, strengthening the effect of the increase in demand on the price.
On the other hand, the Ethereum Foundation’s recent sale of $4.6 million worth of ETH put a short-term pressure on prices. Sales activities, along with the already shrinking supply, may cause prices to move horizontally for a while.
While decreasing liquidity and increasing staking rates stand out as supporting factors for the price in the long term, periodic sales can lead to short-term fluctuations.
