Over the past week, the Ethereum (ETH) network has witnessed a flurry of activity, with whales capitalizing on price dips while retail investors appear to be selling off their holdings. Currently trading between $1,980 and $1,990, ETH struggles to break through the psychologically crucial $2,000 barrier despite heightened trading and network engagement.
Recent data shows that wallets holding between 10,000 and 100,000 ETH added a significant 320,000 ETH over the past week. The buying spree peaked with 120,000 ETH accumulated on Sunday and Monday alone, showcasing the resilience and determination of larger holders. In contrast, smaller wallets (those holding between 100 and 10,000 ETH) sold off approximately 210,000 ETH during the same period, exhibiting a notable behavioral shift among retail traders.
Despite these fluctuations, sentiment in the U.S. market remains relatively steady. The Coinbase Premium Index, an indicator of U.S. buyer sentiment, remains positive, while U.S. spot ETH exchange-traded funds (ETFs) reported a return to net inflows on Monday, bringing in $38.6 million without a trace of outflows among the nine listed products.
On-Chain Activity Reaches New Heights
Remarkably, the Ethereum blockchain recently achieved a 10-year high in daily active addresses, reaching 837,200—a figure that reflects an 82% increase over the past five years and over 1,100% growth compared to the levels recorded a decade ago. New wallet creation is also displaying positive trends, with approximately 284,800 new wallets created daily, up 64% from five years ago. Both metrics are historically associated with significant growth phases for Ethereum.
However, this considerable on-chain engagement has not yet translated into positive price action. ETH’s current trading price sits well below its key moving averages, with the 50-day exponential moving average (EMA) at around $2,300 and the 200-day EMA near $2,945, indicating ongoing bearish pressure.
Price Levels to Monitor
Market dynamics remain volatile, with liquidations for ETH amounting to $78.3 million in the past 24 hours, predominantly affecting long positions, which suffered losses totaling $48 million. As ETH faced another rejection around the $2,000 mark, analysts have noted that this could push prices down towards a support zone between $1,850 and $1,900.
The relative strength index (RSI) currently rests around 43, reflecting moderate momentum but not enter oversold territory. Traders should pay close attention to key resistance levels at $2,020, $2,050, and $2,080. A definitive break above $2,120 could pave the way for prices to reach $2,200.
Conversely, key support levels are established at $1,960 and $1,932, with a potential drop below $1,895 threatening to send ETH further down towards $1,850 or even $1,820. Accumulation patterns suggest that buyers have heavily concentrated their purchases around the $1,800 mark, with approximately 1.23 million ETH acquired at an average price of $1,890 over the last month.
As the trading landscape remains tumultuous, long liquidation risk appears concentrated between the $1,900 and $1,950 range, while short positions face mounting pressure above the $2,000 threshold. ETH’s current trading scenario, hovering around $1,990, furthermore indicates its precarious position within this volatility band.
As the Ethereum network continues to thrive in terms of activity, the interplay between whale movements and retail sentiment will be crucial to watch as the market evolves.
