Market attention returned to Ethereum following whale entities selling significant amounts from their holdings during a critical area where prices may break out.
The asset has demonstrated extended bearish performance throughout the past four months and currently reveals initial indicators of possible price recovery, yet market participants face both positive and negative outlooks.
According to data from Lookonchain, a prominent Ethereum whale who acquired 5,001 ETH in 2017 has officially exited the market. The investor bought ETH at the initial price of $277 in 2017 and conducted a gradual months-long process of asset liquidation.
The whale did not liquidate their Ethereum holdings in time to capture the $4,800 all-time high but successfully extracted a profit worth $8.6 million. Long-term holder position has become less certain after this transaction.
Market analyst Ali observed ETH selling activities reach their highest point within the previous two weeks. The reported sell-off of 760,000 ETH pushed Ethereum prices downward and maintained tight price limits between $2,000 and $2,100.
The market is currently observing an undecided position between recovery and breakdown after traders started watching for a possible breakout.
Source: Ali
Also Read: Grayscale Seeks SEC Approval to Launch Crypto ETF Including XRP
Whale Movements and Technical Signals Point to a High-Stakes Turning Point for Ethereum
Ethereum recovered from its recent selling wave by using an important trendline that started from late 2020. Bulls presently try to rebuild strength by breaking above the important 200-day EMA, while this support area acts as a major point of defense.
The weekly Relative Strength Index has established a pattern of two consecutive bottoming points that frequently indicates forthcoming bullish price movements.
Technical indicators currently demand attention because Ethereum will shape its future by determining whether it will experience growth through a breakout or face a more substantial market decline.
Ethereum encounters major resistance at two critical levels which stand at $2,081 and $2,100 at present. Crossing this confirmed resistance point with strength will indicate the beginning of short-term bull market dynamics.
Such an outcome would allow Ethereum to reach higher support points that could create opportunities for wider altcoin engagement.
Source: Tradingview
The failure of Ethereum’s recovery attempt coupled with damaged support zones may drive prices down to reach approximately $1,500. A major dip to that magnitude would probably suspend all prospects of an altseason while triggering fresh fears within investors who face macroeconomic uncertainties.
Conclusion
Ethereum faces an important choice while whales start selling at its current position, which keeps traders in a state of unease. Ethereum’s upcoming trajectory will probably determine its short-term movement because the market decision at this juncture holds critical implications for a significant future rally or sustained downward trends.
Also Read: Grayscale Seeks SEC Approval to Launch Crypto ETF Including XRP
