Ethereum (ETH) is currently trading at approximately $2,530, following a recent pullback from the $2,700 level. This decline was primarily driven by profit-taking activities, with investors realizing gains totaling around $1.5 billion after a significant price surge. Despite the selling pressure, substantial inflows into accumulation addresses and staking protocols have provided underlying support, preventing a more severe downturn.
Understanding the Recent Price Movement
Ethereum experienced a 2% decline on Thursday as investors capitalized on the previous week’s impressive 30% rally. However, the downward momentum has been somewhat cushioned by strong accumulation trends. Over the past two days, more than 640,000 ETH have flowed into accumulation addresses, indicating sustained interest from long-term holders.
Profit-Taking and Market Dynamics
The recent price action has been influenced by a noticeable increase in selling activity. Key on-chain metrics, such as the Spent Output Age Band (SOAB), surged to its highest level since October, signaling large-scale distribution. This metric measures the number of coins distributed in a day multiplied by the number of days since they were last moved.
Similarly, the Mean Coin Age indicator, which tracks the average number of days investors hold their tokens, has shown a downward trend. This further confirms increased distribution, as long-term holders participate in selling.
As a result, Ethereum investors realized nearly $1.5 billion in profits since the beginning of the week. In the last 24 hours alone, profits exceeded $900 million—marking the highest level since June 10, 2024. Although the market saw substantial gains, the sell-off also led to nearly $300 million in losses for some participants.
Market Sentiment and Trader Behavior
Short-term traders have begun re-establishing positions following the recent price increase. Data indicates that these traders had previously held significant ETH positions before the market correction in the first quarter, which led to widespread liquidations. The current net buying volume suggests renewed confidence, albeit with caution due to recent volatility.
Factors Supporting Ethereum’s Price
Despite the profit-taking, several factors are helping to stabilize Ethereum’s price. The consistent inflow of ETH into accumulation addresses—wallets with no history of selling—demonstrates strong holding sentiment among large investors.
Additionally, staking inflows and whale holdings have continued to grow over the past week, according to data from CryptoQuant. These trends help explain why the decline in ETH’s price has not accelerated, even amid increased selling pressure.
The Role of Market Catalysts
Currently, the market lacks major catalysts to sustain the buying momentum seen earlier. However, the fundamental support from accumulation and staking activities provides a buffer against excessive volatility. For Ethereum to resume its upward trajectory, it must overcome key resistance levels and regain bullish momentum.
Ethereum Price Prediction: Key Levels to Monitor
Ethereum is testing crucial support near $2,500 after facing rejection at the $2,750 level, which acted as a resistance zone between September and November 2024.
If selling pressure persists and ETH breaks below $2,500, it could seek support in the key range between $2,250 and $2,100. A rebound from this zone, followed by a break above the resistance levels at $2,750 and $2,850, would validate a bullish flag pattern. This could potentially push ETH toward the psychological $3,000 mark.
On the downside, a break below $2,100 might lead to a test of the $1,688 support level.
Technical indicators show mixed signals. The Relative Strength Index (RSI) has retreated from overbought territory, while the Stochastic Oscillator and Moving Average Convergence Divergence (MACD) have dropped below neutral levels, indicating weakened bullish momentum.
Futures Market Activity
According to Coinglass, the total futures liquidations for Ethereum over the past 24 hours amounted to $109.88 million. Long liquidations accounted for $79.36 million, while short liquidations totaled $30.52 million. This reflects heightened market volatility and cautious trader sentiment.
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Frequently Asked Questions
What caused Ethereum’s recent price decline?
Ethereum’s pullback from $2,700 was primarily due to profit-taking activities, where investors realized gains of approximately $1.5 billion after a 30% price surge. Increased selling pressure, particularly from long-term holders, contributed to the downturn.
How are accumulation addresses affecting ETH’s price?
Accumulation addresses—wallets with no history of selling—have absorbed over 640,000 ETH in the past two days. This inflow has provided significant support, preventing a more drastic decline despite increased selling activity.
What are the key resistance levels for Ethereum?
The immediate resistance levels are at $2,750 and $2,850. A break above these levels could validate a bullish flag pattern and push ETH toward $3,000. Conversely, failure to hold support at $2,500 may lead to a test of lower support zones.
What is the significance of the Mean Coin Age indicator?
The Mean Coin Age measures the average number of days investors hold their tokens. A downward trend suggests increased distribution, indicating that long-term holders are selling their coins, which can exert downward pressure on the price.
How do futures market liquidations impact ETH’s price?
Large-scale liquidations, such as the $109.88 million seen recently, can amplify price volatility. Long liquidations often lead to forced selling, while short liquidations can trigger buying pressure, both influencing short-term price movements.
What role does staking play in Ethereum’s market dynamics?
Staking inflows indicate investors’ willingness to lock up their ETH for potential rewards, reducing immediate selling pressure. This, combined with growth in whale holdings, provides stability and support for Ethereum’s price during market downturns.