Ethereum's (ETH) price experienced a 10% decline recently due to failed attempts to establish $2,700 as a support level. Despite this, the altcoin remains above its two-month uptrend line sustained by strategic whale activity.
High-value investors are crucial to potential price reversals, as Ethereum holders panic amid a notable rise in profit-taking. This marks the highest level of realized profits in two months, indicating a defensive move by investors looking to secure gains during market downturns.
The increase in selling activity suggests diminishing short-term market confidence in Ethereum, raising concerns about a possible panic-driven sell-off. Such scenarios imply a potential sharp decline in ETH's value.
Amid the current sell-off, whales are counteracting the drawdown by accumulating ETH, highlighting their strategic approach. This reinforces broader market sentiment and indicates confidence in Ethereum's long-term potential, even as prices remain volatile.
Currently, ETH aims to flip the local resistance at $2,546 into support, setting the stage for another attempt to break above $2,700. Breaching this level would signal a positive sentiment shift, potentially leading to further gains.
If Ethereum fails to breach $2,546 or faces renewed selling pressure, its position along the uptrend line could be jeopardized, potentially driving the price down to $2,344 and changing the market's outlook.
