Ethereum is experiencing a significant buying interest after breaking resistance levels, despite a decline in large transaction volumes and whale activity. Recent indicators signal a potential bullish trend, with a current price around $1,640. However, investor sentiment is mixed, and a dip below certain support levels could indicate a bearish takeover.
Ethereum has recently experienced a surge in buying activity, overcoming several key resistance levels. As Bitcoin recovers above $85,000, Ethereum’s market dominance is on the rise. On-chain indicators also reflect bullish momentum; however, a decline in whale activity could present challenges ahead.
Ethereum’s trading performance in the last week indicated heightened interest, with a price increase of nearly 6%. Data from Coinglass revealed approximately $82.8 million in Ethereum positions were liquidated, with buyers losing roughly $43.5 million against sellers’ $39.2 million. Despite a recent recovery from its lowest point in March 2023, investor sentiment remains fragile. The number of wallets holding at least $1 million worth of ETH has notably decreased, reaching a low since January 2023, suggesting waning interest from affluent investors.
Significantly, large transaction volumes for Ethereum have decreased, with whale activity dropping from $9.81 billion to $2.75 billion. For instance, on April 14, a single whale transferred 20,000 ETH (approximately $32.4 million) to the Kraken exchange for selling purposes. Furthermore, reports indicate a long-term holder from Ethereum’s 2015 ICO has been selling off their ETH, evidenced by a sale of 632 ETH worth around $1 million on April 13.
The market sentiment appears mixed, compounded by a 1.16% decline in Ethereum’s open interest—now around $17.91 billion—potentially hindering its recovery and increasing the likelihood of a short-term pullback. Presently, Ethereum is attempting to maintain its price above the critical $1,500 level, currently trading around $1,640, up more than 2% in the last 24 hours.
Trend indicators show upward motion, with moving averages rising and the RSI indicating strength for buyers. Should the price remain above the descending resistance line, there is potential for a push towards the significant $2,000 level. Conversely, a failure to hold above the EMA20 trend line could result in a drop toward $1,384, marking a pivotal support level and possibly shifting momentum towards bearish control.
