Ethereum’s rally towards the $4,000 mark has hit a significant roadblock as selling pressure from Ethereum whales has intensified. After showing strength above $3,500, Ethereum’s price faces notable resistance at the $3,700 level, prompting some analysts to suggest that the breakout to $4,000 is now delayed. Adding to the pressure is a surge in ETH whale activity, with large transfers and profit-taking moves spooking investors.
Ethereum’s Struggle at $3,700 Resistance
Crypto analyst Rekt Capital noted that Ethereum’s latest attempt to break above the $3,700 resistance level ended in a “picture-perfect rejection,” highlighting the ongoing difficulty in surpassing this crucial barrier. For Ethereum to continue its upward momentum and eventually push towards $4,000, it will need a strong weekly close above the $3,700 mark, according to Rekt Capital.
The Ethereum/BTC pairing is also encountering resistance, which analyst CrediBULL Crypto has flagged as a “trouble area.” If Ethereum faces a rejection at this level, combined with a potential correction in Bitcoin, Ethereum’s price could slide to a significant buy zone between $2,700 and $2,800.
ETH Whale Dumping Raises Concerns
Ethereum’s price struggles are compounded by the actions of key whales in the ecosystem. Ethereum co-founder Jeffrey Wilcke made headlines today after transferring 20,000 ETH, worth $72.5 million, to the Kraken exchange. This follows a broader trend of profit-taking by Ethereum insiders. Wilcke has offloaded a total of 44,300 ETH this year, valued at $148 million, at an average price of $3,342 per token.
In addition, Winslow Strong, director of the Qualia Research Institute, transferred 9,380 ETH (about $33.7 million) to Coinbase, marking the latest in a series of significant ETH sales. Strong has sold a total of 14,233 ETH, worth nearly $50 million, since Ethereum’s price began its recovery in early November.
Market Sentiment and Funding Rates
Despite the selling pressure, there is some optimism for Ethereum’s long-term outlook. The rise in ETH’s funding rates signals growing bullish sentiment in the futures market. These rising funding rates indicate increasing confidence among traders, suggesting that Ethereum may see continued upward movement once the current resistance levels are cleared.
However, with ETH’s price currently hovering around $3,570, down 1.27% on the day, the market remains uncertain. Daily trading volumes have fallen 32%, dropping below $30 billion, and liquidations have surged to $32 million in the past 24 hours, with $19 million in long liquidations and $13 million in short liquidations, according to Coinglass data.
Conclusion: Ethereum’s Road to $4,000 Faces Hurdles
As Ethereum navigates a critical period of resistance and whale selling, its path to $4,000 appears delayed. Traders are advised to watch for key technical levels, including the $3,700 resistance and potential buy zones near $2,700-$2,800. While Ethereum’s long-term prospects remain strong, short-term volatility driven by whale activity and market conditions could continue to affect its price trajectory.
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