The price of Ethereum is currently navigating a pivotal range, having recently dipped below a significant support level. After reaching an intraday peak near $1,987, ETH retraced to approximately $1,935, indicating persistent selling pressure at elevated price points. While this decline may appear modest, it alters the overall market sentiment and raises questions about future price movements.
Interestingly, whale activity has surged, accompanied by a steady increase in staking, suggesting that large holders are not distancing themselves from the asset. This situation presents a contrasting scenario of near-term weakness against a backdrop of long-term optimism. Ethereum now finds itself at a critical juncture where the next price action could determine the broader market trend.
Whale Accumulation and Staking Indicate Long-Term Optimism
Recent on-chain analytics reveal that Ethereum is consistently flowing into accumulation addresses, even amidst the price pullback. Large holders seem to be transferring coins into long-term wallets rather than moving them to exchanges, which typically suggests a strategy of accumulation rather than distribution. Historically, this pattern of whale activity tends to surface during market cooling phases, where short-term sentiment may weaken yet long-term confidence remains strong.
Moreover, the rate of Ethereum staking has achieved notable milestones, with over 30% of the total ETH supply now actively staked. This substantial amount of ETH locked in validator contracts reduces the available liquid supply for trading and enhances the security of the network. The convergence of whale accumulation and rising staking participation implies a growing structural belief in Ethereum”s long-term value. While immediate price movements may seem uncertain, the fundamental aspects appear to be gradually strengthening.
Impending Volatility as Price Approaches Key Liquidation Zones
The Coinglass liquidation heatmap illustrates where leveraged traders face considerable risk, with certain zones acting like price magnets. A significant concentration of short liquidations exists around the $2,050–$2,120 range. If ETH can gain momentum and reach this area, it could trigger a wave of short covering, potentially propelling the price swiftly towards $2,180–$2,220. Conversely, a robust liquidity cluster is present just below the current price, near $1,900–$1,880, where long positions are heavily exposed. A drop into this zone may incite a chain reaction of sell-offs, dragging ETH downward to $1,850 or lower.
Currently, Ethereum“s price is losing momentum on the 4-hour chart, slipping beneath the rising trendline that previously supported its structure. This breakdown, along with repeated rejections near the $2,095–$2,120 supply zone, indicates a loss of bullish momentum. The Relative Strength Index (RSI) remains below the 45–50 threshold, reflecting diminishing momentum without any strong bullish divergences noted so far. As long as ETH trades under $2,000, the pressure for further downside remains evident. In the near term, prices could revisit the $1,880–$1,820 range, aligning with a crucial demand zone. A decisive reclaim above $2,050 is essential to reopen the potential for upward movement towards $2,150 later in the month.
