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Ethereum has faced significant volatility over the past few days, with massive selling pressure emerging after the cryptocurrency failed to breach the yearly highs set earlier in December. This price action has left traders and investors wondering where ETH will go next as it consolidates below critical resistance.
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Despite the turmoil, on-chain data points to a potentially bullish outlook. Analyst Ali Martinez shared insightful metrics showing that Ethereum whales have accumulated significantly during this period of uncertainty. According to the data, whales purchased 340,000 Ethereum – worth more than $1 billion – in the past 96 hours. This significant accumulation indicates that major players see long-term value in Ethereum, even as short-term market sentiment remains mixed.
Continued whale activity could signal a coming rebound for ETH, as top holders position themselves for future gains. Historically, these accumulation phases are often preceded by strong rallies, as increasing demand and declining supply contribute to bullish momentum.
Whale demand for Ethereum continues to rise
Demand for Ethereum has shown significant instability throughout the year, with continued selling pressure driving prices down from local highs. Each attempt to rise has met with resistance, highlighting the challenges ETH has faced in maintaining bullish momentum. Despite this, Ethereum continues to show resilience, especially during corrective phases, as major holders actively accumulate ETH.
Martinez recently Shared compelling statements on XWhich indicates a noticeable whale accumulation trend. In just the past 96 hours, whales have purchased 340,000 Ethereum coins, worth more than $1 billion. This significant buying activity underscores major players’ confidence in Ethereum’s long-term potential. This buildup often signals a potential market shift, as whales strategically position themselves ahead of a potential breakout.
Martinez and other analysts believe this whale-driven demand indicates a significant price rise in the coming weeks. Furthermore, the broader cryptocurrency community expects Ethereum to play a pivotal role in next year’s expected altcoin season, cementing its position as a market leader among altcoins.
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As Ethereum enters this critical phase, market participants will be closely monitoring its ability to capitalize on the current accumulation. If whale activity continues, this could pave the way for Ethereum to regain local highs and potentially achieve new milestones, further cementing its dominance in the cryptocurrency space.
Support ETH key holding
Ethereum is currently trading at $3,320, showing resilience after stabilizing above the critical 200-day moving average (MA) at $3,000. This level is widely considered a leading indicator of long-term market strength. Staying above it indicates that Ethereum is still in a bullish structure despite the recent volatility and selling pressure.
For Ethereum to regain momentum, the bulls will need to push the price above the $3,550 resistance level and hold it. A break of this area would indicate a renewed uptrend and increase the possibility of Ethereum testing higher levels. However, this may not happen immediately, as the market may enter a period of sideways consolidation.
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This consolidation is common after periods of extreme volatility and allows the market to establish a more stable base for the next significant move. A strong consolidation phase above $3,000 would further confirm the 200-day moving average as a strong support level, boosting confidence among investors.
Featured image by Dall-E, chart from TradingView