Ethereum Rally Stalls Due to 2-Month High-Profit Taking

Ethereum’s (ETH) price recently experienced a 10% decline, with failed attempts to establish $2,700 as a support level. Despite these setbacks, the altcoin has managed to hover above the uptrend line for the past two months, a feat largely sustained by strategic whale activity. 

With substantial assets at play, these high-value investors might hold the key to a potential reversal.

Ethereum Holders Panic

Ethereum recently experienced a notable rise in profit-taking, marking the highest level of realized profits in two months. This surge indicates that numerous ETH holders chose to cash in on previous gains, contributing to recent price fluctuations. The spike in selling activity coincides with a broader market decline, reflecting a defensive move by investors aiming to secure profits amid a downturn.

This trend could lead to a sharp decline in ETH’s value , heightening concerns and potentially sparking a panic-driven sell-off. Such increases in realized profits often suggest diminished short-term market confidence among investors.

Read more:  How to Invest in Ethereum ETFs?

Ethereum Realized Profits. Source:  Santiment

Amid the sell-off, whales are taking measures to counteract the drawdown. This group of high-value investors, particularly those holding between 10,000 and 100,000 ETH, recently accumulated over 360,000 ETH, valued at more than $880 million. 

The accumulation efforts by whales highlight their strategic approach and bolster broader market sentiment. Their actions demonstrate a vote of confidence in Ethereum’s long-term potential , even as the price navigates through the current volatility . With whales capitalizing on lower prices, there is hope for more stable support levels, at least temporarily.

Ethereum Whale Accumulation. Source:  Santiment

ETH Price Prediction: Not Repeating History

Ethereum’s recent 10% decline has brought it precariously close to the uptrend line, testing this level as support. The downturn followed a series of failed attempts to break above $2,700, placing the altcoin’s current price under significant pressure. This fourth failed attempt has increased ETH’s vulnerability, although the uptrend line continues to offer a semblance of stability.

Currently, ETH’s immediate target is to flip the local resistance at $2,546 into support. Achieving this would provide Ethereum with a strong foundation for another attempt to breach the $2,698 mark, setting the stage for a move above $2,700. Reclaiming this level as support would mark a notable shift in sentiment, signaling the potential for further gains.

Read more:  Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum Price Analysis. Source:  TradingView

However, failure to breach $2,546 or a renewed wave of selling could jeopardize ETH’s position along the uptrend line. Losing this support could drive Ethereum’s price down to $2,344, invalidating any bullish-neutral outlook and ushering in a more cautious sentiment across the market.