Ethereum Rallies Toward $2,300 Despite $800 Million Whale Exodus

If ETH continues to rise, the next major resistance is expected at $2,450, an analyst said.

On March 16, Ethereum (ETH) climbed to nearly $2,300 for the first time since early February, posting an 8% gain in 24 hours.

This occurred even as large holders continued to dump hundreds of millions of dollars in tokens, as a broader crypto rally appeared to defy ongoing geopolitical tensions that have split traditional markets apart.

Whales take part in the rally

Despite the slight rise, investors did not feel the type of confidence that usually precedes a lasting breakout. Data shared by analyst Wise Crypto showed that over the past seven days, large ETH holders sold 380,000 ETH, worth around $800 million. They suggested that many of these sellers viewed short-term price surges as an opportunity to exit, which could slow further upward movement.

Based on their analysis, Ethereum is currently trading between $1,917 and $2,338, which are its support and resistance levels, respectively. Wise Crypto predicts that if the price falls below the lower limit, ETH could fall just above $1,700. However, if the asset remains above the resistance for a while, it could test levels near $2,450.

The analyst also noted that the difference between long/short market value and realized value (MVRV) for ETH is very negative, meaning long-term holders can lose money while short-term traders make money. The MVRV ratio compares the current price of ETH to the average price at which all coins were last moved, giving a rough idea of ​​the unrealized profit or loss between holders.

When short-term holders make most of the money, as they appear to be doing now, selling pressure usually quickly ensues.

Even with mixed signals, ETH was up 13% over seven days at the time of writing, well above $2,200. The jump came amid a larger rally in the crypto market, which also briefly pushed Bitcoin (BTC) above $74,000, reaching its highest level in about six weeks, following a US attack on Iran’s Kharg island, which exports 90% of the country’s oil shipments.

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Futures Markets Dominate ETH Trading

Elsewhere, data from analyst Darkfost shows that while ETH has recovered in the spot market, derivatives activity indicates that short-term trading still dominates the asset’s market structure.

The on-chain tech reported on Sunday that Ethereum futures trading volume on Binance is now more than six times the spot trading volume, with the ratio between them falling to its lowest level since the end of the 2023 bear market.

When futures trading is much more active than spot trading, it usually means that the market is driven by leveraged positions rather than regular accumulation.

“This reflects real weakness in the Ethereum spot market at present,” Darkfost wrote. “It is possible that sales from the Ethereum Foundation or even Vitalik Buterin contribute to investor caution.”

Still, not everyone thinks ETH will stay range-bound, as, according to crypto commentator Ash Crypto, a daily close above $2,400 could lead to a move towards $2,800.