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Ethereum has faced significant volatility over the past few days, with massive selling pressure emerging after the cryptocurrency failed to surpass its yearly highs set earlier in December. This price action has left traders and investors wondering about ETH’s next direction as it consolidates under critical resistance.
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Despite the turbulence, on-chain data suggests a potentially bullish outlook. Analyst Ali Martinez shared insightful metrics showing that Ethereum whales have been accumulating heavily during this period of uncertainty. According to the data, whales purchased 340,000 ETH, worth over $1 billion, in the last 96 hours. This significant accumulation indicates that major players see long-term value in Ethereum, although short-term market sentiment remains mixed.
Continued whale activity could signal an upcoming rally in ETH, with large holders positioning themselves for future gains. Historically, such accumulation phases have often preceded strong rallies, as increasing demand and reducing supply contribute to bullish momentum.
Demand for Ethereum Whales Continues to Rise
Ethereum demand showed significant instability throughout the year, with persistent selling pressure pushing prices down from local highs. Each rally attempt was met with resistance, highlighting the challenges ETH faced in maintaining its bullish momentum. Despite this, Ethereum continues to show resilience, especially during corrective phases, as large holders actively accumulate ETH.
Martinez recently shared compelling data on X, indicating a remarkable trend of whale accumulation. In the last 96 hours alone, whales purchased 340,000 Ethereum, valued at over $1 billion. This significant purchasing activity highlights major players’ confidence in Ethereum’s long-term potential. Such accumulation often signals the possibility of a market shift, with whales strategically positioning themselves ahead of a possible breakout.
Martinez and other analysts say this whale-driven demand points to a significant rise in prices in the coming weeks. Furthermore, the broader crypto community expects Ethereum to play a central role in the new season expected next year, strengthening its position as the market leader among altcoins.
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As Ethereum enters this critical phase, market participants will closely monitor its ability to capitalize on current accumulation. If whale activity continues, this could pave the way for Ethereum to regain local highs and potentially set new milestones, further cementing its dominance in the crypto space.
Support for ETH holding key
Ethereum is currently trading at $3,320, showing resilience after holding above the critical 200-day moving average (MA) at $3,000. This level is widely considered a key indicator of long-term market strength. Holding above suggests that Ethereum remains in a bullish structure despite 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 there. Breaking this zone would signal a new uptrend and increase the likelihood 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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Such consolidation is common after periods of increased volatility and allows the market to establish a more stable foundation for the next major move. A strong consolidation phase above $3,000 would further confirm the 200-day MA as a strong support level, boosting investor confidence.
Featured image of Dall-E, chart by TradingView
