- Over 6.28M ETH held between $2,295–$2,350 may stall Ethereum’s breakout unless bulls gain momentum
- Whale netflows fell by 49.74% in 7 days and fees dropped by 56.31%
Ethereum [ETH], at press time, was continuing to wrestle with a critical supply wall near the $2,330 mark – A level that may determine the asset’s short-term trajectory. That’s not all though as right now, over 106 million ETH addresses might be out of the money, reflecting a heavily underwater market.
More importantly, data showed that over 6.28 million ETH are held between $2,295 and $2,350 by 2.6 million addresses. Owing to these same, these addressed have formed one of the most significant resistance clusters on the network.
Therefore, any move into this zone could face immediate selling pressure from break even-seeking holders. A breakout above this area would not only flip key resistance into support, but also signal renewed confidence among sidelined participants.
Whales retreat as network activity slows down further
Ethereum’s on-chain health painted a mixed picture though. Total fees dropped sharply, declining by 56.31% over the past week and 88.89% over the last 90 days. This steep drop alluded to weakening demand and subdued usage of the Ethereum network.
Simultaneously, large holders have pulled back significantly as well, with whale netflows plunging by 49.74% in the last seven days and over 447.53% across the last month. This could mean hesitation among institutional players, reducing Ethereum’s breakout potential.
Source: IntoTheBlock
Although some ETH has been leaving centralized exchanges, the lack of active accumulation by whales limits upside pressure. Without renewed institutional conviction and a spike in fee activity, any rally attempt may face exhaustion.
Price structure shows signs of life, but trend remains intact
Ethereum has begun showing early signs of recovery after weeks of downward pressure, climbing by 3.62% in the last 24 hours to trade at $1,647.83 at press time. In fact, the asset rebounded strongly from the $1,385 support level to test the $1,650–$1,703 resistance zone.
However, ETH remains trapped within a descending parallel channel, one that has capped multiple recovery attempts.
Source: TradingView
The horizontal level at $1,703 seemed to be in line with the upper boundary of the channel, forming a dual resistance zone.
A confirmed breakout above this zone would invalidate the bearish structure and potentially trigger a rally towards $2,330. Until then, Ethereum’s market structure will favour caution.
Investor sentiment holds steady amid cautious optimism
Despite the broader uncertainty though, some signs pointed to growing confidence among retail participants. Exchange netflows revealed weekly outflows of 29,948 ETH, reflecting a 1.96% fall in balances on trading platforms.
This hinted at cautious confidence as traders are anticipating a future breakout, rather than immediate gains. However, the sentiment remains divided across the board, with retail optimism not yet mirrored by institutional players or rising network engagement.
Source: CryptoQuant
Conclusively, Ethereum’s chances of breaking the $2,330 supply wall remain limited in the short term. While the recent rebound and exchange outflows signal mild optimism, the absence of whale accumulation and subdued fee activity could weaken the breakout case.
Additionally, the price action has respected the descending structure, with the resistance still intact. Therefore, unless ETH decisively reclaims $1,703 and reactivates on-chain demand, the $2,330 wall is likely to hold firm. For now.
