Key Takeaways
Amid the price correction, $3,650 appears to be a key support for ETH; a breakdown could push the price 8% lower. There are heavy short positions around $3,768.9, making it a strong resistance level.
Ethereum’s [ETH] price continues to consolidate near a key resistance level following weeks of strong upward momentum.
Amid this, whales and institutions, with strong conviction, have been accumulating ETH and seizing the current dip as an opportunity.
ETH accumulation surges
In the past 24 hours, blockchain-based transaction trackers Lookonchain and Onchain Lens have revealed that whales and institutions have been accumulating massively.
A newly created wallet, 0x8eEa, has accumulated a notable 33,644 ETH worth $125.73 million via FalconX.
With this, the whale’s ETH holdings and total acquisitions have soared to 105,977 ETH, worth $397 million, over the past four days.
Source: X (Formerly Twitter)
Not just that, another newly created crypto wallet purchased 32,640 ETH worth $122.18 million through OTC deals.
With this, the wallet’s ETH holdings have increased to 43,787 ETH worth $163 million in the past four trading days.
Source: X
Apart from these crypto whales, the publicly listed SharpLink Gaming (Nasdaq: SBET), often referred to as the “MicroStrategy of Ethereum,” purchased 79,949 ETH last week, boosting its total holdings to 360,807 ETH.
Data reveals that this total holding has risen by 29% compared to the previous week.
Looking at these acquisitions by institutions and crypto whales, it appears that the race for ETH accumulation has now begun.
ETH price momentum remains flat
However, these movements have not had a significant impact on the ETH price, as it has remained relatively unchanged over the past 24 hours.
At press time, ETH was holding strong at the $3,682 level, recording a modest 0.90% upward move. Overall trading volume during the same period dropped by 17%, indicating lower participation from traders.
AMBCrypto’s analysis found that ETH was in an uptrend at press time, but due to its overstretched price and impressive gain of over 35%, the asset is now experiencing profit booking.
It all began when ETH approached the key resistance level of $4,000.
Source: TradingView
Despite the ongoing profit booking, ETH hasn’t faced a massive price drop; instead, it continues to consolidate within a narrow range around the local support level of $3,650.
This level acted as a key zone for both investors and traders.
Based on the 4-hour timeframe, ETH has been consistently taking support from the $3,650 level.
If sentiment shifts and the price falls below this support, the asset could face an 8% decline, potentially reaching the $3,300 level.
On the other hand, if the price holds above the local support, ETH still has room to rally and retest the $4,000 level.
Major liquidation levels to watch
As per on-chain analytics firm CoinGlass, the major liquidation levels where traders have shown strong interest are $3,359.7 on the lower side, where traders have built $290 million worth of long positions.
On the upper side, another key liquidation level is at $3,768.9, where traders have built $589.17 million worth of short positions.
Source: CoinGlass
This metric shows that traders appear bearish, as they believe the king of altcoins is unlikely to cross the $3,768.9 level anytime soon.
