Key Insights
- •Ethereum price is facing resistance again at the $3,000 zone.
- •Ethereum ETF inflows have seen an increase, with BlackRock leading the surge.
- •Large holders of Ethereum are accumulating, while smaller holders are divesting.
Ethereum's price has once again found itself in the $2,950 to $3,000 range, experiencing a rejection from traders. This movement occurs amidst positive ETF flows and significant adjustments in the holdings of large-scale investors. These developments are providing fresh signals for market participants to monitor in the near term.
Ethereum Price Rejection Zone Holds Firm at the $3,000 Level
Ethereum's price continues to be capped below the $3,000 mark, with each attempt to breach this resistance resulting in a pullback. Market analysts have identified this level as critical for determining the next direction of the price. Ted Pillows observed that Ethereum has repeatedly reached this point without sustained upward momentum.
Pillows suggested that a decisive move above $3,000, supported by consistent trading volume, could pave the way for a potential rise towards $3,400. However, without such a breakout, the price may remain confined to its current trading range for an extended period.
As of the latest data, ETH is trading at $2,909.4, showing a modest increase of 0.66% over the last 24 hours. Its market capitalization stands at $351.61 billion, with trading volume experiencing a slight decrease of 21.27%.
On shorter timeframes, technical indicators are being closely watched. The MACD indicator recently crossed its signal line on the four-hour chart, and the market histogram has moved into positive territory. These signs suggest a potential for short-term strength, yet the significant resistance at the $3,000 level continues to exert its influence.
Long Consolidation Pattern Continues to Shape the Bigger Picture
Beyond immediate price fluctuations, analysts are pointing to a broader trend that has been in play for several years. According to Anup Dhungana, Ethereum has been trading within a wide consolidation band since 2021. This extended period has acted as a phase of accumulation for Ethereum's price, with each attempt to reach the upper boundary being met with rejection at a major trendline.
This perspective highlights that the asset has been moving sideways for a considerable duration, operating within a large channel that has constrained both its price highs and lows.
Dhungana posits that a decisive break above this overarching structure could trigger a substantial upward movement. Based on the dimensions of this long-term pattern, his technical target suggests a potential price range between $8,500 and $9,000.
Recent trading activity aligns with the notion of a compressed market. ETH's price has largely remained between $2,700 and $3,300 in recent weeks, with minimal excursions outside this band. The Relative Strength Index (RSI) is also hovering around the neutral 50 mark, indicating a lack of strong directional momentum. This suggests that traders are awaiting a clearer signal before committing to larger positions.
ETF Inflows and Whale Moves Introduce New Dynamics for Ethereum Price
The activity surrounding Exchange-Traded Funds (ETFs) has emerged as a significant factor influencing Ethereum's daily price movements. The chart indicates a strong inflow following several days of outflows, with a notable $78.6 million entry signaling renewed institutional interest. A substantial portion of this inflow, $46.1 million, was attributed to BlackRock, representing the largest single entry recorded.
Concurrently, shifts in whale activity are also noteworthy. BitMine recently acquired 69,822 ETH, a transaction valued at over $200 million. This acquisition brings BitMine's total holdings to 3.63 million ETH, representing approximately 3% of the total supply. Wallets holding between 10,000 and 100,000 Ethereum have collectively increased their holdings by 440,000 ETH.
In contrast, smaller wallet segments have reduced their positions. Those holding 1,000 to 10,000 ETH have decreased their holdings by 100,000 ETH, while wallets with 100 to 1,000 ETH have sold a combined 120,000 ETH.
These divergent movements among large holders suggest a divided sentiment within this investor group. The market is now observing how these accumulated holdings and divestments will interact with the critical $3,000 resistance level. A successful breach of this zone could propel Ethereum's price towards $3,500, whereas a failure to overcome it may result in the price remaining within its established range for the foreseeable future.