Recent weeks have seen a surge in buying interest for Ethereum following a successful breakthrough of key resistance levels. With Bitcoin also making a strong comeback above $85,000, Ethereum’s market dominance is on the rise. Positive on-chain indicators are pointing towards a bullish momentum as Ethereum approaches a descending resistance line. However, a decrease in whale interest could potentially alter this forecast.
Ethereum’s Large Transaction Volume Declines
Ethereum has witnessed a notable increase in buying interest, resulting in a nearly 6% price surge over the past week. Coinglass data reveals that approximately $82.8 million worth of Ethereum trading positions were liquidated, with buyers facing losses of around $43.5 million and sellers about $39.2 million.
Despite hitting its lowest point since March 2023 last week, Ethereum managed to recover slightly due to a temporary pause in tariffs. However, this recovery has not instilled confidence among investors. Glassnode data indicates a significant drop in the number of wallets holding at least $1 million worth of ETH this year, reaching levels not seen since January 2023. This decline suggests a waning interest from wealthier investors.
Large Ethereum transactions have seen a notable decrease according to IntoTheBlock data. Whale activity has plummeted from a peak of $9.81 billion to just $2.75 billion, indicating a clear reduction in interest from major investors. Recent transactions align with this trend, as on April 14, a whale moved 20,000 ETH (equivalent to about $32.4 million) to the Kraken exchange, likely in preparation for selling.
Furthermore, an on-chain analyst reported that an early investor from Ethereum’s 2015 ICO has been consistently offloading assets. On April 13, this whale sold 632 ETH, valued at around $1 million.
Despite mixed market sentiment, Ethereum’s open interest has decreased by 1.16%, currently standing at $17.91 billion. This decline in open interest could potentially impede Ethereum’s recovery and increase the likelihood of a short-term pullback.
What’s Next for ETH Price?
After bouncing back from the crucial $1,500 level, Ether is facing resistance from sellers preventing further downward movement. Buyers are now striving to maintain the price above a descending resistance line to reinforce the current bullish momentum. Currently trading around $1,640, ETH has seen a more than 2% increase in the past 24 hours.
With moving averages pointing upwards and the RSI in positive territory, buyers seem to hold the upper hand. Sustaining the price above the descending resistance line could propel ETH towards the critical $2,000 level in the near future.
Conversely, for sellers to regain control, they must push the price below the EMA20 trend line. A break below this level could lead Ether towards $1,384, a significant support level. A further decline below this point could indicate a short-term shift in momentum favoring the bears.
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