- Ethereum remains steady above $2,500 despite rising selling pressure, supported by strong whale and institutional buying.
- If ETH confirms a rounded bottom pattern, it could rally over 40% toward $4,100.
Ethereum (ETH) has managed to remain resilient above the $2,500 mark despite growing selling pressure from both short- and long-term holders. As of Tuesday, the cryptocurrency traded at $2,520, showing remarkable strength amid increased profit-taking and investor distribution.
Recent data from Santiment and CryptoQuant revealed a notable decline in the Mean Coin Age metric for ETH, signaling heightened distribution activity. Simultaneously, futures volume heatmaps showed intensified trading near the $2,500 level, hinting at market overheating. CryptoQuant analyst ShayanMarkets noted that this pressure stems from investors offloading holdings around this psychological level, potentially setting the stage for a short-term pullback.
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Despite the apparent sell-off, ETH has stayed afloat thanks to significant whale and institutional accumulation. Nasdaq-listed BTCS disclosed a fresh acquisition of 3,450 ETH, bringing its total holdings to 12,500 ETH. Similarly, Abraxas Capital added 46,295 ETH this week, continuing its buying streak that now totals over 350,000 ETH since May 7.
Adding a twist to the market sentiment, Ethereum co-founder Jeffrey Wilcke transferred his entire ETH holdings—over 105,000 ETH—to Kraken on Tuesday. The move temporarily stirred fears of a sell-off. However, the ETH was quickly moved from Kraken to multiple new addresses, suggesting it may not have been a liquidation.
On the technical front, Ethereum is teetering on the edge of validating a rounded bottom pattern. A confirmed breakout above the $2,850 resistance, supported by flips of the 50-, 100-, and 200-week Simple Moving Averages, could send ETH soaring toward $4,100—marking a potential 40% rally.
Still, caution is warranted. The Relative Strength Index (RSI) remains flat, reflecting market indecision, while a bearish cross on the Stochastic Oscillator could suppress bullish momentum in the near term.
In summary, while selling pressure has increased, Ethereum’s stronghold above $2,500, bolstered by whale and institutional buying, signals a potential breakout. If the rounded bottom pattern holds, ETH could be poised for a significant upward move in the coming weeks.