Ethereum (ETH) finds itself in the spotlight, with rising wallet accumulation clashing against key technical resistance. According to data from CryptoQuant analyst Burakkesmeci, over $50 billion worth of ETH is now held in accumulation addresses—a remarkable 65% increase since the start of the year. This surge raises crucial questions about Ethereum’s near-term trajectory and investor sentiment.
Ethereum Accumulation Hits Record Highs
Ethereum accumulation addresses, now holding more than 19 million ETH, have shown no withdrawal activity to date. This behavior indicates a long-term, buy-and-hold strategy adopted by investors, further strengthening the belief in Ethereum’s future potential. In January, these addresses held just 11.5 million ETH, but the steady inflow suggests growing optimism, particularly with the launch of spot Ethereum ETFs in July.
Burakkesmeci projects that 20 million ETH could be stored in these wallets by year-end, highlighting increasing institutional and retail participation. “Ethereum is no longer just for tech enthusiasts,” Burakkesmeci noted, underscoring ETH’s expanding role in the global financial landscape.
Key Technical Resistance at $2,700
Despite its robust fundamentals, Ethereum faces stiff resistance near the $2,700 level—a zone marked by the 100-day moving average and the neckline of a Head and Shoulders pattern. Currently trading around $2,645, ETH’s sideways movement and low volatility indicate a market in balance, with neither buyers nor sellers holding a decisive edge.
A breakout above $2,700 would confirm a bullish trend, potentially pushing ETH toward $3,000—a level expected to attract significant selling pressure. However, if the price fails to surpass this resistance, Ethereum may face a rejection that could trigger a pullback toward $2,300.
Short-Term Outlook: Will ETH Break Through or Fall Back?
On the 4-hour chart, Ethereum is consolidating between the 0.5 Fibonacci retracement level ($2,600) and the 0.618 retracement level ($2,700)—both historically difficult levels for buyers to overcome. A subtle bearish divergence on the Relative Strength Index (RSI) suggests sellers may soon gain momentum, increasing the risk of a decline if the $2,700 barrier holds.
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Should ETH manage to decisively break above $2,700, it could spark a rally toward $3,000. However, failure to break through may push the price lower, testing support around $2,300. As Ethereum battles this critical resistance, its price action will be crucial in determining the cryptocurrency’s short-term trajectory.
Market Awaits the Next Big Move
Ethereum stands at a pivotal moment. With accumulation at an all-time high but technical resistance looming, the next few days could be decisive. Investors are closely watching whether ETH can break past $2,700 and gain upward momentum—or if sellers will force a retreat toward lower support levels. For now, the market remains in equilibrium, waiting for a breakout to chart Ethereum’s next course.
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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