In a significant move within the cryptocurrency market, whales have acquired approximately $1.2 billion worth of Ethereum (ETH) over the past 24 hours. As of now, the price of ETH hovers around $3,016, reflecting a 2.3% increase in the last day. This surge comes as Ethereum attempts to navigate a precarious bearish setup, with its price currently sitting just under 2% below a pivotal resistance level.
The market dynamics are particularly sensitive as the year draws to a close, raising the question: will Ethereum manage to overcome bearish pressure, or is this merely a temporary surge?
Bearish Patterns and Market Dynamics
Currently, Ethereum is exhibiting a head-and-shoulders pattern on its daily chart, a structure traditionally associated with bearish trends. The critical neckline for this pattern is situated near $2,809. A confirmed breakdown below this level could potentially trigger a decline of around 20%, based on the established pattern projections.
However, the path forward for bears is complicated by significant market support. A notable supply cluster resides between $2,804 and $2,823, encompassing about 3.6 million ETH. This zone represents where many holders previously set their positions, creating a formidable defense mechanism that complicates any potential downward movement.
Whale Accumulation Signals Confidence
Recent on-chain data reveals that whales, excluding exchange wallets, have increased their holdings from 100.65 million ETH on December 28 to 101.05 million ETH today, an addition of approximately 400,000 ETH. This accumulation aligns with Ethereum”s recovery efforts, suggesting a growing confidence among large investors despite the prevailing breakdown risks.
Moreover, the activity surrounding older coins has dramatically decreased, with spent coins from the 365-day to 2-year age band plummeting from 45,846 ETH to just 1,076 ETH—a staggering 98% reduction. This drop indicates that long-term holders are refraining from selling into market strength, which alleviates some selling pressure and allows whales to influence recovery attempts more effectively.
Technical Levels to Watch
As Ethereum trades near $3,016, the immediate critical level to monitor is $3,069. A daily close above this point would suggest a break from the short-term bearish trend. If ETH surpasses $3,449, the upper limit of the head-and-shoulders pattern, it would completely invalidate the bearish structure, shifting control to buyers.
Conversely, if Ethereum fails to hold above the neckline at $2,809, it may open the door for a decline targeting levels under $2,623, thus invalidating the bullish recovery scenario. For the moment, Ethereum finds itself at a crossroads, but the current momentum and supply dynamics appear to favor bullish sentiment if it can clear the $3,069 resistance.
