Thursday witnessed a 5% drop in Ethereum's price, sparking trader speculation about its ability to reclaim and close above the $3,700 resistance level before year-end.
Key Developments
Whale Activity: LookonChain data revealed a technically skilled whale (potentially linked to Longling Capital) purchasing 6,000 ETH during the dip. This entity, known for impeccable timing, has amassed $83M in profits to date.
- Accumulated 75,400 ETH (avg. cost: $2,392) since May 8, 2023.
- Sold 50,800 ETH (avg. price: $3,401) for $172.8M.
Trader Insights
Scenario Analysis by MaxBecauseBTC
Max outlined two potential outcomes for ETH holders over the next 6 months, urging traders to:
- Embrace volatility and maintain resilience.
- Focus on upside potential rather than short-term losses.
Resistance Battle at $3,700
Cold Blood Shiller highlighted $3,700 as a critical quarterly resistance level.
- ETH has traded above this level for six consecutive quarters but hasn’t secured a close above it.
- "12 days remain this quarter—expect a fierce battle for closure," he noted.
Historical Parallels
Trader Ted compared ETH’s current $4,000 struggle to the 2020–21 cycle’s $1,400 resistance.
- Anticipates a similar breakout: closing above $4,100 could signal new all-time highs.
Market Metrics
IntoTheBlock Data:
- Large transactions ↓11.7%
- Daily active addresses ↓5.6%
- Exchange net flows ↓132.2%
- Transactions >$100K rose from 10,365 to 11,817 in 24 hours.
- Holder Status: 81% profitable, 8% break-even.
- ETHA Inflows: BlackRock’s iShares Ethereum Trust (NASDAQ: ETEA) saw $80.7M net inflows Wednesday ($3.4B total).
FAQs
Why did ETH drop 5%?
The decline likely reflects profit-taking and resistance struggles near $3,700, compounded by reduced large-transaction activity.
Is $3,700 a significant level for Ethereum?
Yes. Closing above $3,700 quarterly has historically been challenging—a sustained breach could signal bullish momentum.
What’s the whale’s impact on ETH’s price?
Strategic buying during dips (e.g., 6,000 ETH) suggests confidence in ETH’s long-term value, potentially stabilizing prices.
👉 Discover how ETH’s volatility compares to top altcoins
👉 Expert strategies for trading ETH resistance levels
Data sourced from LookonChain, IntoTheBlock, and trader analyses.
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