Experts are closely watching Ethereum's recent price movements after failing to break through the $2,500 resistance level, resulting in a slight pullback. Currently trading at $2,354, Ethereum continues to show promising signs of a recovery on the horizon.
A notable shift in investor behavior, specifically among large whale addresses holding substantial amounts of ETH, could play a crucial role in supporting an upward trajectory for the altcoin.
Whale addresses, known for holding between 10,000 to 100,000 ETH, had been actively selling off their holdings, with a total of 640,000 ETH amounting to $1.5 billion being offloaded in the previous week. This selling pressure contributed to Ethereum's struggle near the $2,500 mark. However, recent data indicates that the selling activity has subsided, hinting at a change in market sentiment.
In the past 24 hours, whale addresses have refrained from further selling, coinciding with Ethereum's stabilization in price. This shift in behavior could be interpreted as a vote of confidence in ETH's potential for recovery. Continued holding of assets by large investors might pave the way for reduced price volatility and stronger support levels for Ethereum.
Moreover, Ethereum's Liveliness indicator reveals that long-term holders (LTHs) have paused their selling activities. The indicator, which typically rises when LTHs are liquidating and falls when they are accumulating, has shown a flat trend recently, indicating a temporary halt in selling pressure.
These trends collectively contribute to Ethereum's price stability, with long-term investors holding their positions to maintain overall market confidence. Should this holding pattern persist, Ethereum could gather momentum for a bullish breakout. A sustained decrease in Liveliness would reinforce positive sentiment, suggesting accumulation rather than distribution among long-term holders.
Looking ahead, Ethereum aims to consolidate support at $2,344, presently trading at $2,354. Securing this level could set the stage for a potential recovery towards $2,549, the next critical resistance level. A successful breach of this barrier would confirm a bullish stance for ETH's price trajectory.
In case Ethereum surpasses $2,549, it might target $2,654 as its next milestone. This upward momentum could position Ethereum for a period of consolidation below $2,814, reminiscent of previous market cycles, before any further upward movement.
Conversely, failing to hold the $2,344 support level could lead to a downward correction. If Ethereum drops below $2,267, it may test a critical support level at $2,170, potentially signaling a short-term bearish trend if breached.
As Ethereum's price dynamics continue to evolve, investors are closely monitoring these key support and resistance levels to gauge the altcoin's future price movements.