ethereum price touched the $4,100 territory in the early hours of March 12, but a wave of profit-taking seen among long-term holders threatens to sink the rally.
After a dizzying 73% rally in the last 30 days, ethereum's price rally has hit a brick wall at the $4,100 mark. Will the bulls be able to regroup for another blatant attempt at the $4,500 milestone or will eth price surrender the $4,000 support?
Long-term investors traded 167,500 eth in the last 24 hours
Unlike bitcoin (btc), which has entered the price discovery phase, ethereum is still about 22% away from its global peak of $4,878. In essence, ethereum price is facing resistance and significant historical accumulation pools.
eth price retreated 2% from $4,100 to $3,967 in the early hours of March 12. On-chain data reveals unusually high trading activity among long-term investors who had been holding a price since 2021.
The chart below from Santiment shows the number of recently traded coins that had previously been sitting still for 3 years or more. This serves as an indicator to track impending sell-offs among long-term investors.
On March 11, investors transferred 167,500 eth that had previously remained idle since 2021. Valued at the current eth price of $4,020, long-term investors have moved over $1 billion in the last 24 hours.
When long-held coins start moving as prices approach major resistance territory, it is a strong indication of imminent profit-taking.
ethereum Price Prediction: eth Might Struggle to Stay Above $3,900
With over $1 billion worth of eth flooding the market in the last 24 hours, ethereum price could struggle to maintain bullish momentum in the coming days. In fact, the bears could try to trigger a decline towards $3,900.
According to data pulled from IntoTheBlock, the current wave of profit-taking among the 1.34 million addresses purchased over 469,540 eth at the average price of $4,100, could shift the momentum in favor of the bears.
If this scenario plays out, the price of eth could fall towards $3,900.
On the upside, if the surging market demand rises enough to absorb the billion-dollar eth supply, the bull can hold the $4,000 support and make another brazen attempt to recapture $4,500.
