- Traders seemed to be over-leveraged at $2,466 on the lower side and $2,612 on the upper side
- Ethereum could drop by 15% if it fails to break the key $2,700-resistance level
After hitting the key resistance level of $2,700, Ethereum (ETH), the world’s second-largest cryptocurrency, has been garnering significant attention from industry giants.
However, over the past 24 hours, the bullish sentiment faded somewhat. Especially as whales who had been dormant for years resurfaced and began dumping their holdings.
A dump worth millions worth of ETH!
Blockchain-based transaction tracker Onchain Lens revealed on X (formerly Twitter) that an Ethereum whale wallet linked to an ICO unstaked 10,195 ETH worth $25.67 million and deposited it to Kraken.
This wallet had been dormant for three years before unstaking and dumping the funds to Kraken. Previously, this wallet had received 50,000 ETH worth $15,550 during the ICO.
Meanwhile, another crypto wallet that had been dormant for eight years deposited 1,764 ETH worth $4.4 million to the Kraken exchange, realizing a profit of over $3.93 million. The post also noted that this whale’s wallet received the ETH for $469,000 from Bitfinex eight years ago.
These significant ETH deposits by crypto giants, after being dormant for years, fueled a few questions – Do these whales know something about a potential price dip, or are they simply following the price action based on historical patterns?
$1.02 billion worth of long bets
However, intraday traders still believe that ETH has the potential to soar in the upcoming days, as reported by the on-chain analytics tool Coinglass.
In fact, data revealed that traders are currently over-leveraged at $2,466 on the lower side (support) and $2,612 on the upper side (resistance).
At these levels, they built $1.02 billion worth of long positions and $192.57 million worth of short positions – Indicating a bullish signal. Given the prevailing market sentiment and the billions of dollars in long positions, it suggested that traders believe ETH won’t fall below $2,466 anytime soon.
Source: Coinglass
When looking at these datasets together, it would seem that traders and whales have mixed sentiments.
At press time, ETH was trading near $2,580 on the charts, having climbed by 3.5% in just 24 hours. Over the same period, its trading volume jumped by 20%, indicating heightened participation from traders and investors, compared to the previous day.
Ethereum (ETH) price action and key levels
According to AMBCrypto’s technical analysis, Ethereum may be heading towards the key resistance level of $2,700. On the daily chart, this level has consistently acted as an area of selling pressure since the beginning of 2024.
Source: Trading View
Historically, whenever ETH’s price has hit this level, it has recorded a price reversal, unless it manages to close above the $2,800-mark. This time, experts are expecting a similar kind of reversal.
Based on the daily chart, if market sentiment remains unchanged and ETH fails to close a daily candle above the $2,800-level, there is a strong possibility that history will repeat itself. If that’s the case, ETH may see a price decline of over 15%, potentially dropping to the $2,200-level.
On the other hand, if ETH successfully breaches the $2,700-resistance level and closes a daily candle above $2,800, it could soar significantly and hit $4,000 in the coming days.
