This article is also available in Spanish.
ethereum has faced significant volatility in recent days, with massive selling pressure emerging after the cryptocurrency failed to surpass its yearly highs set in early December. This price action has left traders and investors questioning the next direction for eth as it consolidates under critical resistance.
Related reading
Despite the turbulence, on-chain data suggests a potentially bullish outlook. Analyst Ali Martinez shared revealing metrics showing that ethereum whales have been accumulating strongly during this period of uncertainty. According to the data, whales purchased 340,000 eth, worth over $1 billion, in the last 96 hours. This significant buildup indicates that major players see long-term value in ethereum, even as short-term market sentiment remains mixed.
The current whale activity could indicate an upcoming eth rally, with large holders positioning themselves for future profits. Historically, these accumulation phases have often preceded strong rallies, as increased demand and reduced supply contribute to bullish momentum.
ethereum whale demand continues to rise
ethereum demand has shown significant instability throughout the year, with persistent selling pressure pushing prices down from local highs. Each recovery attempt has faced resistance, highlighting the challenges eth has encountered in maintaining bullish momentum. Despite this, ethereum continues to demonstrate resilience, particularly during corrective phases, as large holders actively accumulate eth.
Martinez recently <a target="_blank" href="https://x.com/ali_charts/status/1870491667972681827″ target=”_blank” rel=”nofollow”>compelling facts shared about xindicating a notable whale accumulation trend. In the last 96 hours alone, whales have purchased 340,000 ethereum, valued at over $1 billion. This significant buying activity underscores the confidence that major players have in ethereum's long-term potential. This accumulation often indicates the possibility of a market reversal, with whales strategically positioning themselves ahead of a potential breakout.
Martínez and other analysts believe this whale-driven demand hints at a significant price increase in the coming weeks. Additionally, the broader crypto community anticipates that ethereum will play a pivotal role in next year's highly anticipated alt season, solidifying its position as the market leader among altcoins.
Related reading
As ethereum enters this critical phase, market participants will closely monitor its ability to capitalize on the current buildup. If whale activity continues, it could pave the way for ethereum to reclaim local highs and potentially set new milestones, reinforcing its dominance in the crypto space.
eth Holding Key Support
ethereum is currently trading at $3,320, showing resistance after holding above the critical 200-day moving average (MA) at $3,000. This level is widely considered a key indicator of long-term market strength. Holding above suggests that ethereum remains in a bullish structure despite the recent volatility and selling pressure.
For ethereum to regain momentum, the bulls will need to push the price above the $3,550 resistance level and hold it. Breaking this zone would indicate a renewed bullish trend and increase the likelihood of ethereum testing higher levels. However, this may not happen immediately as the market could enter a period of sideways consolidation.
Related reading
This consolidation is common after periods of increased volatility and allows the market to establish a more stable foundation for the next significant move. A strong consolidation phase above $3,000 would further confirm the 200-day MA as a solid support level, boosting confidence among investors.
Featured image of Dall-E, TradingView chart
