Ethereum’s price has been gaining momentum recently, but its surge toward the much-anticipated $4,000 mark may be delayed as significant selling pressure from Ethereum whales emerges. The price of ETH has faced a crucial resistance level at $3,700, and the recent offloading of Ethereum by whales, including co-founder Jeffrey Wilcke, has raised concerns that the price might struggle to break through these key levels.
As Ethereum prices rise, they are now encountering stiff resistance at $3,700. For Ethereum to continue its ascent towards $4,000, it needs to secure a strong weekly close above this level, according to popular analyst Rekt Capital. However, Ethereum’s recent price action has shown signs of a potential pullback, with Rekt Capital describing the move as a “picture-perfect rejection” from the resistance.
The critical question is whether Ethereum can overcome this hurdle. If the price fails to close decisively above $3,700, it may signal a period of consolidation or retracement, which could delay the anticipated push toward $4,000.
Ethereum whales have also started to offload significant amounts of ETH, signaling potential profit-booking amid the price surge. Notably, Ethereum co-founder Jeffrey Wilcke transferred 20,000 ETH—worth approximately $72.5 million—to the Kraken exchange. This move has drawn attention to the possibility that whales are capitalizing on the recent price increase, raising concerns over whether a sell-off could prevent Ethereum from reaching its next major target.
Whale selling typically causes volatility in the market, and with major players cashing out, investors are left wondering whether Ethereum’s rally will continue or if this marks the start of a larger retracement.
In addition to resistance at $3,700, analysts are also paying close attention to the ETH/BTC pairing, which is showing signs of approaching a critical “trouble area.” Analyst CrediBULL Crypto suggests that Ethereum’s upward momentum might face resistance in this pairing, and a rejection here—combined with a possible 10% correction in Bitcoin—could push Ethereum’s price lower, potentially targeting a buy zone between $2,700 and $2,800.
This potential retracement zone could offer a significant opportunity for buyers looking to enter at a lower price, but it also poses a challenge for Ethereum’s short-term bullish outlook.
Despite the challenges Ethereum faces with whale selling and resistance levels, there are signs of optimism. Ethereum’s funding rates, an important indicator of market sentiment, have been rising. This uptick signals growing confidence among traders and investors, as the price of Ethereum continues its upward momentum.
While short-term volatility might provide opportunities for corrections and pullbacks, the positive funding rate trend suggests that the long-term outlook for Ethereum remains bullish.
Ethereum’s journey toward $4,000 is facing significant hurdles, including a strong resistance at $3,700 and increasing whale selling. However, the rise in funding rates and the continued bullish sentiment in the futures market provide optimism that Ethereum could break through these levels eventually.
Traders should keep a close eye on the $3,700 resistance, as well as the ETH/BTC pairing, which could influence Ethereum’s near-term price action. If Ethereum fails to hold above $3,700, a potential pullback to the $2,700-$2,800 range could provide a buying opportunity before a more sustained rally toward $4,000.
Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9
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