In recent hours, the market experienced a modest recovery, with Bitcoin’s price managing to climb above the $37,000 mark. In the wake of this development, Ethereum (ETH) also saw a significant increase, surpassing the $2,000 threshold, and is currently gearing up for a potential push beyond the $2,100 level. Nonetheless, as resistance levels are holding firm, there is a growing concern among large holders, or whales, who have been quietly accumulating assets for the first time in two months, hinting at a possible exit strategy.Â
Ethereum Triggers $12 Million In Short Liquidation
Over the last 24 hours, ETH price made a surprising rebound and surged above $2,000. This has triggered massive liquidations on the chart, as revealed by Coinglass data. Nearly $12 million worth of short positions were liquidated after the price went against sellers’ bearish bets below $1,900, strengthening immediate support levels.Â
Interestingly, on-chain data, as pointed out by a prominent analyst, supports a bullish view of Ethereum price. Lately, Ethereum’s price has been displaying a series of fluctuations, primarily heading in a downward direction. Although this might appear worrisome to the average observer, smart investors, particularly the significant players commonly referred to as ‘whales,’ perceive this as a valuable opportunity.
A noteworthy pattern accompanying these price declines is the abrupt increase in non-exchange Ethereum balances and ETH accumulation. This trend signifies that instead of reacting with panic and hastily liquidating their holdings on exchanges, these prominent stakeholders are opting to accumulate more of the altcoin.
For the first time in two months, Ethereum addresses holding a balance exceeding 10,000 tokens or $20 million have been quietly increasing. This surge is strengthening Ethereum’s current trajectory as buyers grow more confident in maintaining momentum above the $2,000 mark.
Intense Battle Between ETH Buyers And Sellers
The Ethereum long/short ratio is presently in the midst of a fierce struggle between bullish and bearish sentiments. There’s a rising possibility of ETH price facing liquidation if the bulls lose faith in breaching the $2,100 threshold. Recent data indicates that the long/short ratio stands at 0.9736, with buyers holding 49.3% of positions and sellers commanding 50.7% of positions.
Furthermore, there seems to be declining interest among long-term whales as Ethereum’s price struggles to break past the $2,100 mark. Information from IntoTheBlock shows a decline in whale transactions, plummeting from a peak of $6.6 billion to approximately $2.2 billion.
The likelihood of a sudden drop in Ethereum’s price might not be substantial at this juncture, as BlackRock’s proposal for a spot ETH ETF seems to be having a positive influence, potentially keeping the altcoin’s price within an attractive buying range.
However, the NVT (Network Value to Transactions) ratio has been on a somewhat ascending trajectory, currently standing at 78.83. This indicates that as the price of ETH surges, there is a concurrent rise in network value. However, in relation to this, Ethereum’s transaction activity has remained relatively subdued this week, suggesting that the ETH price may be approaching overvaluation and could be poised for a correction around the $2.1K peak.
Should the bulls manage to uphold the price above the critical threshold of $2,000, Ethereum (ETH) will regain its momentum and position itself for an imminent breakout from its symmetrical triangle pattern. Upon a successful breakout, the coin is poised to make a move to challenge its resistance level at $2,190 in the coming hours.
However, on the bearish side, if sellers dominate and Ethereum can’t surpass a key resistance level, its momentum might weaken, risking a drop to the $1,900 support if it breaks out of its current pattern.
