Ethereum (ETH) is currently facing resistance at the $4,000 mark, struggling to maintain its position for the second time in six months. This suggests a lack of strong bullish sentiment among investors, with profit-taking likely contributing to the halt in momentum.
However, whale addresses, which hold between 10,000 and 100,000 ETH, have been accumulating the cryptocurrency over the past five days, indicating confidence in its long-term potential.
The transaction volume distribution for Ethereum shows that many holders are currently sitting on gains, which raises the likelihood of profit-taking in the near term. If a significant number of investors decide to capitalize on their profits, it could lead to short-term sell-offs and downward pressure on Ethereum's price.
The altcoin recently experienced a decline and is attempting to secure the $3,721 level as support. If it can hold above this level, there is potential for a rally that could push the price above $4,000 and possibly reach a new year-to-date high. Conversely, if Ethereum fails to maintain the $3,721 support, it may face further declines.
Despite the challenges faced at the $4,000 resistance level, the accumulation by whales indicates a strong belief in Ethereum's long-term growth potential. This confidence is particularly noteworthy given the current market volatility. The ongoing accumulation by whale addresses may also serve to stabilize Ethereum's price in the face of potential sell-offs.
As Ethereum continues to grapple with the $4,000 resistance, market participants are closely observing the interplay between accumulation and profit-taking. The next few days will be critical for Ethereum's price trajectory, with a focus on key support levels and the behavior of large investors.