What to know:
- ETH price is holding firm near the $2,000 support zone
- Whale transactions surged over 1,500% before cooling off
- Resistance near $2,390 remains the next key breakout level
Ethereum is still ranked as the 2nd cryptocurrency in terms of market cap and is utilized for both decentralized applications and for its smart contract functionality.
The level of use and interest from institutions frequently provides insight into broader sentiment in the cryptocurrency market. At press time, the coin is trading at $2,055.08 with a decrease of 4.65% over the past 24 hours.
Consolidation Signals Potential Upside
According to the TradingView chart, Ethereum has been in an overall downtrend but is starting to stabilize after having made a significant drop in price. The last recorded price on the chart was around $2,070, and it’s currently trading above an important support price level at $2,000, which shows that buyers have come into the market.
The MACD indicator is showing weakening bearish momentum, with the histogram slowly progressing towards a reversal into positive territory.
This would indicate that the selling pressure may begin to fade from the previous bearish trend and would provide potential for a very short-term recovery.
If Ethereum can successfully sustain above the $2,200 level and move towards $2,390, this could further support bullish momentum and be a precursor to a possible reversal in trend.
Also Read: Ethereum (ETH) Giant Buys Huge $145M Dip: Nears 4% Supply
Whale Transactions on the Rise
According to the recent post by analyst Ali Charts, indicated that during a span of 2 days, Ethereum whale transactions increased dramatically from approximately 123 to over 2055 (an increase of over 1,500%).
Although the total number of these types of transactions has since decreased significantly (currently around 239), the increase in activity does reflect that large holders are continuing to participate in the cryptocurrency market.
Typically, when whale transactions increase, this would indicate that large investors may be repositioning in the market for future participation after experiencing near-term price volatility.
Overall, Ethereum appears to be forming a strong support level above $2K. If buying continues and gets through previous resistance levels, then this last group of whales can be viewed as providing a base or launching point for the next bullish trend.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Ethereum Supply Tightens After $1.67B Outflow as Breakout Builds
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