Ethereum (ETH) showed a shocking 29% move last week, surpassing $3,000 for the first time since August. However, despite Bitcoin (BTC) moving 13% over the past few days, its bullish momentum has slowed.
Ethereum 1 week chart. Source: TradingView
Ethereum is up just 0.66% since November 11, but data shows whales are assessing the current price as a window of opportunity for long-term accumulation.
“Fresh” Ethereum Whale Buys $23.44 Million in ETH
Whale activity was rampant in the Ethereum ecosystem throughout the third quarter, with multiple wallets aggressively dumping ETH into the market. A new whale address emerged as ETH price surged 23% in the fourth quarter.
Lookonchain, an on-chain wallet tracker, highlighted in an
This particular wallet was activated on November 9th, and since then it has purchased over 18,000 ETH at an average price of $3,201 and is currently worth $57.8 million.
Ethereum whale wallet data. Source: etherscan.io
Interestingly, the wallet only holds $19.3 million in Ethereum and Tether (USDT). Therefore, if a favorable price drop occurs, whales can accumulate more Ethereum.
Cointelegraph previously reported that in 2016, ETH whales achieved returns of 80,000%, earning more than $30 million from an initial investment of $38,000. The on-chain address moved 11,000 ETH in a single transaction when the ETH price was around $2,777.
Similarly, another ETH address, which collected 23,743 ETH from August 2017 to November 2018 at an average price of $11, transferred 6,250 ETH, or $20 million, to the Kraken exchange on November 14.
Ethereum ICO whales have a history of selling their ETH holdings on Kraken based on past activity.
Related: Ethereum Holder Turns $38,000 into $30 Million After 8 Years
Ethereum faces “strong resistance” at $3,500.
Bitcoin experienced price discovery this week, but Ethereum has yet to surpass its previous all-time high (ATH) from 2021. Therefore, altcoins continue to witness overhead resistance, which maintains macro-structural importance against the current all-time highs. $4,878.
In line with this, independent trader Eddie noted that ETH’s recent price rise to $3,450 perfectly tapped the 0.618 Fibonacci line drawn along the all-time high and 2022 low. The Fibonacci level was also accompanied by a supply zone between $3,550-$3,050.
Eddie’s Ethereum 1-day chart analysis. Source: X.com
The merchant added.
“$ETH faces strong resistance at the start of the next important supply zone of 3100-3500 and we expect further price correction to break through it.”
From a technical perspective, Ethereum closed the previous two daily candles on a bearish note and appears poised to retest the fair value gap (FVG) between $3,072 and $2,987 currently formed on the daily chart.
Ethereum 1 day chart. Source: TradingView
The aforementioned range hosts an order block and support at the 50-EMA level on the 4-hours chart. Therefore, if the altcoin regains bullish momentum in the first area of interest, there is a possibility of ETH rebounding in the $3,000 range.
Related: Ethereum Enters ‘Scarcity Mode’, Paving the Way for ETH to Rise to $6,000 — Analyst
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.