- 449k ETH added by holders despite price dip
- $2,142 is seen as a critical recovery target
- Ethereum’s highly anticipated Pectra upgrade is scheduled to go live on May 7
A few days ago, Ethereum saw a historic single-day inflow of 449,000 ETH into accumulation addresses – wallets that have never spent funds. This marks the highest daily inflow since 2018, suggesting that these Ethereum whales are optimistic about Ethereum’s future, even though many remain underwater with a realized price of $1,981. This means that the purchased prices are higher than the current market price. Despite short-term losses, these holders are not panicking, and they remain convinced of Ethereum’s long-term potential.
ETH Struggles at $1,895 Resistance
Judging by technical analysis, Ethereum faces big resistance at $1,895, where approximately 1.64 million ETH is held by investors from November 2024. A decisive close above $2,142 is needed to break the current pattern of declining highs and lows, which would signal a potential bullish reversal.
Also, active Ethereum addresses have increased by 10%, indicating growing network engagement. However, DeFi activity remains subdued, with declining DEX volumes.
There’s been some major whale activity lately as well. A long-term Ethereum holder recently moved $27.6 million worth of ETH after over 900 days of inactivity. The move caused a short-term dip in Ethereum’s price, but it didn’t last long before the cryptocurrency stabilized.
A Sign of Good News?
Despite Ethereum trading approximately 57% below its all-time high of $4,100, the recent accumulation by long-term holders and increased network activity might suggest a foundational confidence in its long-term value.
Then, upcoming upgrades such as the Pectra upgrade could also play a role in boosting Ethereum. Scheduled to release on May 7 on the mainnet, it aims to enhance scalability, reduce transaction fees, and improve staking efficiency.
Short-Term Outlook: Resistance is Key
Still, the mentioned resistance levels and subdued DeFi activity indicate that while the groundwork for a bullish trend seems to be forming, trouble may be brewing and certain challenges remain.
In the short term, ETH faces technical resistance that must be overcome to reverse its current downtrend. Traders are closely watching the $1,895 resistance level, but failure to break through can prolong the consolidation phase or even trigger further declines. On the other hand, a confirmed close above $2,142 would be a strong signal for a bullish turnaround.
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