Ethereum’s price has been struggling to break above the $4,000 mark, falling short of this key psychological level despite rallying close to it. The failure to sustain above $4,000 indicates investor hesitancy, with profit-taking likely playing a role in stopping the momentum. Ethereum whales, however, have been accumulating ETH, with addresses holding between 10,000 and 100,000 ETH purchasing a total of 400,000 ETH worth over $1.5 billion in the past five days. This accumulation shows that large wallet holders remain confident in Ethereum’s long-term growth potential.
Despite challenges in surpassing the $4,000 barrier, institutional and high-net-worth investors continue to show interest in Ethereum as an investment, as demonstrated by the recent whale buying activity. The transaction volume distribution reveals that a majority of Ethereum transactions are currently in profit, indicating that many holders are seeing gains and may decide to take profits, potentially leading to short-term sell-offs and downward pressure on Ethereum’s price. While this demonstrates healthy market activity, it also signifies a risk of price corrections in the future.
In terms of price prediction, Ethereum’s price has seen a 7% drop, now trading at $3,761 and attempting to secure $3,721 as support to avoid further declines. Breaking above $4,000 could lead to a new year-to-date high above $4,093 and potentially set new all-time highs for Ethereum. However, failing to maintain the $3,721 support could lead to a drop towards $3,524 and even down to $3,327, invalidating the bullish thesis and potentially leading to a more significant market correction.
In conclusion, Ethereum’s price struggle to break above $4,000 highlights investor hesitancy and the potential for profit-taking. Despite this, whale accumulation and the dominance of profitable transactions suggest continued institutional and high-net-worth investor interest in Ethereum’s long-term growth. The ability to secure support levels and break above key resistance points will be crucial in determining Ethereum’s future price movements and whether it can sustain its growth trajectory in the coming days and weeks.
