Ethereum is facing recent price declines, yet whale investors continue to accumulate significant amounts of cryptocurrency. The Pectra upgrade and Hoodi testnet launch promise to improve network scalability and reduce fees.
Whales Accumulate Despite Market Downturn
Despite ETH’s price drop, major investors are making strategic purchases. According to analyst Ali Martinez, whales accumulated 420,000 ETH ($811 million) over the past five days, coinciding with a 10.35% decline in price last week. Whale accumulation signals long-term confidence, but U.S. Spot ETH ETFs recorded $35.30 million in outflows, reflecting investor caution.
Ethereum’s Pectra Upgrade and Hoodi Testnet
Ethereum is preparing for its next major upgrade, Pectra, aimed at improving scalability and staking flexibility. This upgrade could enhance transaction capacity and reduce gas fees. On March 17, developers will launch Hoodi, a new testnet designed to address challenges faced by Holesky and Sepolia test networks. If successful, Pectra is scheduled for mainnet integration on April 25.
Key Price Levels and Technical Indicators
Ethereum is currently trading at $1,930.19, with a Relative Strength Index (RSI) of 33.29, indicating that ETH is nearing the oversold zone. This suggests a potential retest of the $2,000 level soon. Bollinger Bands indicate that ETH’s critical support level is around $1,741, with stronger bullish momentum potentially pushing prices toward the mid-band at $2,157 or the upper band at $2,574. Key resistance is at $2,154, aligning with the 20-day Exponential Moving Average (EMA). A break above this level could confirm a bullish trend.
With Ethereum’s market dynamics shifting, traders will closely monitor whale activity, ETF flows, and upcoming network upgrades to determine ETH’s next price direction.
