Just as Ethereum price showed strength above $3,500, Ethereum whale selling increased again. The massive dumping of ETH by whales to exchanges has raised concerns among investors, who are wondering if profit-taking is starting before $4,000 is reached. Notably, Ethereum co-founder Jeffrey Wilcke also dumped a staggering 20,000 ETH worth $72.5 million.
Ethereum price faces resistance above $4,000
Well-known cryptocurrency analyst Rekt Capital showed ETH’s latest attempt to break through the key resistance level of $3,700. The analyst added that the Ethereum price needs a strong weekly close above this level to confirm the breakout. Only after this, the ETH price can continue to rise to $4,000 and even higher.
Rekt Capital described the recent ETH price action as a 'perfect rejection' of resistance, emphasizing that Ethereum is not yet ready to break through.
Another popular analyst, CredoBULL Crypto, pointed out key resistance levels in the ETH/BTC pairing. With the recent upward momentum, this currency pair is approaching the first 'trouble zone.' The analyst stated that a rejection at this time, combined with a potential 10% pullback in Bitcoin, could push the price of Ethereum into an important buying area between $2,700 and $2,800.
While long-term spot holders may choose to hold through short-term volatility, CredoBULL emphasizes that traders should closely monitor the $2,700-$2,800 range for potential entry opportunities.
One thing that has brought some optimism is the rise in ETH financing rates. Financing rates are a key indicator of sentiment in the futures market and have seen a significant increase in recent weeks. As the price of Ethereum continues to rise, this increase indicates that bullish momentum among traders and investors is strengthening.
The phenomenon of ETH whales selling off is increasing.
Ethereum co-founder Jeffrey Wilcke made headlines today by transferring 20,000 ETH worth $72.5 million to the Kraken exchange. This move coincides with Ethereum's price rising above $3,500.
This is the fourth large-scale ETH transfer by Ethereum co-founder in 2024. So far, he has transferred 44,300 ETH, worth approximately $148 million, at an average price of $3,342 per token. On the other hand, Ethereum co-founder Vitalik Buterin has recently been selling meme coins.
Additionally, Spot on Chain reported another significant Ethereum sale event, where Winslow Strong, director of the Qualia Institute, transferred 9,380 ETH, worth $33.7 million, to Coinbase just two hours ago.
This move follows the general trend of Strong's liquidations, as he has sold a total of 14,233 ETH, worth $4.88 million, since ETH prices began to recover in early November.
As of the time of writing, the price of ETH has dropped 1.27% to $3,570, with daily trading volume down 32% to below $30 billion. According to data from Coinglass, the 24-hour liquidation amount has surged to $32 million, with long liquidations totaling $19 million and short liquidations at $13 million.
