Ethereum has experienced significant volatility in recent days, with significant selling pressure emerging after the cryptocurrency failed to break above annual highs set earlier in December. This price action has left traders and investors questioning the next path for ETH as it consolidates under critical resistance.
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Despite the turmoil, data on the chain shows a potentially optimistic outlook. Analyst Ali Martinez shared insightful measurements that show Ethereum whales have been piling up heavily during this period of uncertainty. According to the data, whales bought 340,000 ETH – worth more than $1 billion – in the last 96 hours. This massive rally indicates that major players see long-term value in Ethereum, even as short-term market sentiment remains mixed.
Continued whaling activity that could signal a revival for ETH, with large holders positioning themselves for future gains. Historically, these rally levels have often been preceded by strong rallies, as increased demand and reduced supply contribute to upward momentum.
The demand for Ethereum whales is increasing
Ethereum demand has shown significant volatility throughout the year, with continued selling pressure pushing prices down from local highs. All rally attempts are resisted, highlighting the challenges ETH has encountered in sustaining an upward trend. Despite this, Ethereum still shows resilience, especially during correction phases, because large holders are actively collecting ETH.
Martinez recently robust data sharing on Xshowing a remarkable movement of whale aggregation. In the past 96 hours alone, whales have bought 340,000 Ethereum, worth over $1 billion. This substantial buying activity reinforces the confidence of major players in Ethereum's long-term potential. Such a rally often signals the possibility of a market move, with whales strategically positioning themselves ahead of a breakout.
Martinez and other analysts believe that this whale-driven demand is reflected in a significant increase in prices in the coming weeks. In addition, the broader crypto community expects Ethereum to play a leading role in the anticipated altseason next year, cementing its position as a market leader among altcoins.
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As Ethereum enters this critical phase, market participants will be closely monitoring their ability to capitalize on the current rally. If whale activity continues, it could pave the way for Ethereum to regain local highs and set new milestones, cementing its dominance in the crypto space.
ETH Holds Key Support
Ethereum is currently trading at $3,320, showing resilience after holding above the critical 200-day moving average (MA) at $3,000. This level is widely regarded as a key indicator of long-term market strength. Holding above suggests that Ethereum remains in a supportive structure despite recent volatility and selling pressure.
For Ethereum to regain momentum, bulls need to push the price above the $3,550 resistance level and sustain it. Breaking this zone would signal a renewed uptrend and increase the likelihood of Ethereum testing higher levels. However, this may not happen immediately, as the market may enter a period of sideways consolidation.
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Such consolidation is common after periods of higher volatility and allows the market to establish a more stable base for the next significant move. A strong consolidation level above $3,000 would further confirm the 200-day MA as a strong support level, building confidence among investors.
Featured image from Dall-E, chart from TradingView
