Recent activity by large Ethereum investors has drawn interest as whales have bought over $236 million in ETH over the past three days, suggesting a possible market shift.
Whale Activity Surges as Ethereum Price Drops
Ethereum's price recently fell below $2,000, creating considerable market pressure. Despite this, large investors continue to purchase ETH, believing future value appreciation will occur. Institutional investors bought more than 120,000 ETH over two days. One transaction showed a whale moving 4,511 ETH from OKX to Aave and subsequently buying 2,563 additional ETH using $5 million in borrowed USDT. These acquisitions took place within an ETH price range of $1,872 to $2,060.
Technical Indicators Point to Short-Term Recovery
Over the past weekend, the market began to recover, with ETH's price reaching $1,991.4. The Relative Strength Index level of 41.61 indicates a neutral position for Ethereum. MACD readings show upward momentum. However, ETH still trades below key resistance levels such as the 50-day Exponential Moving Average at $2,067. If the price surpasses this resistance, it may approach the next level of $2,367 at the 100-day EMA. Support remains strong at $1,600, having survived multi-dated assessments this month.
Leverage Positions Increase Price Sensitivity
The current ETH price sits within a crucial resistance area where short sellers with leveraged positions on Binance are positioned. A significant number of short liquidations could trigger in the $2,013 to $2,040 price range. If ETH exceeds this resistance, a short squeeze event may drive the price up to $2,080. Long liquidations at $1,950 and below $1,920 offer ETH price support in the short term. Both sides have excessive leverage positioning at 50x and 100x, increasing the potential for rapid price movements.
Whale activity shows investor confidence in potential ETH price growth. Despite current market challenges, technical indicators suggest a looming recovery, potentially leading to significant price movements in the near term.
