Ethereum price has struggled to close above the $4,000 mark for the second time in the past six months. Although it has approached this psychological level, ETH has failed to hold the position, signaling the need for stronger bullish conviction to push the price past this barrier.
The failure to sustain above $4,000 suggests investors are hesitant, with profit-taking likely playing a role in halting momentum.
Ethereum Whales Accumulate
Meanwhile, whale addresses holding between 10,000 and 100,000 ETH have demonstrated strong accumulation over the past five days, purchasing a combined total of 400,000 ETH, worth over $1.5 billion. This significant accumulation thus highlights that large wallet holders remain confident in Ethereum’s long-term growth.
The whale buying activity highlights the attractiveness of Ethereum as an investment. Despite recent challenges in breaking the $4,000 barrier, this large-scale accumulation demonstrates that institutional and high-net-worth investors are not deterred by short-term volatility.
Ethereum Whale Holding. Fonte: Santiment
The transaction volume distribution further reveals that a significant portion of Ethereum transactions are in profit, far outweighing those in the red. This suggests that the majority of Ethereum holders are in profit, increasing the likelihood of profit-taking. If investors decide to capitalize on their profits, it could trigger short-term selling, putting downward pressure on the price of Ethereum.
The prevalence of profitable transactions also indicates that Ethereum has a number of investors interested in securing returns. While this reflects healthy market activity, it also means that the risk of price corrections remains high. As such, profit-taking, especially after a strong rally, could hamper Ethereum’s ability to break through the $4,000 barrier and sustain its growth trajectory.
Ethereum Transaction Volume Distribution. Source: Santiment
ETH Price Prediction: Decline or Recovery
Ethereum price dropped over 7% yesterday, now trading at $3,592. The altcoin is attempting to secure $3,721 as support to prevent further declines. This level is crucial in determining whether ETH can maintain its bullish momentum or face a deeper pullback in the coming days.
Securing the $3,721 support is essential for Ethereum to break above $4,000. If that happens, the digital currency could reach a new all-time high above $4,093. This potential rally would also pave the way for ETH to set new all-time highs, reinforcing the positive outlook for the altcoin.
Ethereum Price Analysis. Source: TradingView
However, if Ethereum fails to hold the $3,721 support, it could drop towards $3,524. A further drop could take ETH to $3,327. If this happens, the bullish thesis will be invalidated, and a more significant market correction could follow.
The article Ethereum (ETH) tries to stay above $4,000, but whales hold on appeared first on BeInCrypto Brasil.
