Ethereum’s price momentum above $3,500 is under scrutiny as large-scale whale sell-offs continue to dominate headlines. Most notably, Ethereum co-founder Jeffrey Wilcke recently transferred 20,000 ETH, valued at $72.5 million, to Kraken. This marks the fourth significant offloading by Wilcke in 2024, bringing his total to 44,300 ETH, worth approximately $148 million, sold at an average price of $3,342 per token.
ETH Price Eyes $4,000 but Faces $3,700 Resistance
Ethereum’s attempt to breach the critical $3,700 resistance has caught the attention of analysts. Popular crypto expert Rekt Capital highlighted Ethereum’s “picture-perfect rejection” at this level, emphasizing the need for a strong weekly close above $3,700 to pave the way for a breakout toward $4,000 and beyond. Without this confirmation, ETH risks a further pullback.
Adding to this caution, CrediBULL Crypto, another prominent analyst, flagged concerns in the ETH/BTC pairing. The pair is nearing its first “trouble area,” where a potential rejection, coupled with a 10% Bitcoin correction, could drive Ethereum prices into a key buy zone between $2,700 and $2,800. For traders, this range could present lucrative entry opportunities amid market turbulence.
Whale Activity Raises Concerns
Beyond Wilcke, other high-profile Ethereum holders are also offloading their assets. Winslow Strong, director of the Qualia Research Institute, recently transferred 9,380 ETH, worth $33.7 million, to Coinbase. Spot on Chain data reveals Strong has liquidated 14,233 ETH, worth $48.8 million, since Ethereum’s price recovery began in early November.
The whale dumping trend raises questions about whether profit-taking is underway ahead of Ethereum reaching $4,000, a key psychological and technical level.
Signs of Optimism Amid Volatility
Despite the selling pressure, Ethereum’s futures market suggests bullish sentiment may be building. Funding rates, a key indicator of market optimism, have seen a notable uptick, signaling traders’ confidence in Ethereum’s long-term potential.
As of now, ETH trades at $3,570, down 1.27% in the past 24 hours, with trading volumes slipping 32% below $30 billion. According to Coinglass data, total liquidations over the same period reached $32 million, split between $19 million in long liquidations and $13 million in short positions.
The Road Ahead
While Ethereum’s journey to $4,000 is facing significant headwinds, the interplay of whale activity, resistance levels, and market sentiment will likely dictate its next moves. Traders and investors should keep a close watch on the $3,700 resistance and potential support in the $2,700-$2,800 range for actionable insights in this volatile market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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