The cryptocurrency market started the week in a bearish mood, with Bitcoin falling below $93,000 and Ethereum hovering near the $3,150 support level. Ether’s recent price action reflects a mix of investor sentiment, as whales continue to accumulate while retail traders reduce their exposure amid global uncertainties.
Whales buy, retail traders reduce exposure
Ethereum, the second-largest cryptocurrency by market capitalization, is down 0.5% in the last 24 hours, dipping below $3,180. On-chain data shows that whales holding 10,000 to 100,000 ETH collectively added roughly 190,000 ETH last week, indicating strong accumulation at higher levels.
Retail investors, on the other hand, are cutting back. Wallets holding between 100 and 10,000 ETH reduced their balances by over 510,000 ETH in the same period. Analysts suggest that geopolitical tensions, particularly involving Greenland, have contributed to the cautious approach among smaller investors.
Despite mixed trading behavior, Ethereum’s network activity continues to climb. Weekly active addresses reached a new all-time high above 706,000, while daily transactions also surged. Notably, network fees have declined, thanks to upgrades implemented in recent years, which contrasts with previous periods where higher activity would typically push fees up.
Ethereum price outlook
The ETH/USD 4-hour chart remains bearish, with Ether losing nearly 4% over the past two days. This decline triggered $120.6 million in long liquidations since Monday, highlighting losses for bullish traders.
Ethereum has maintained the $3,060 support level, which could serve as a springboard for a rebound. If this support holds, Ether may rally toward the 200-day EMA and potentially test the $3,360 resistance level again.
Technical indicators suggest caution. The Relative Strength Index (RSI) currently reads 42, below neutral levels, while the MACD indicates weakening momentum. A further drop below support could accelerate the bearish trend, possibly pushing Ether below $3,000 for the first time this year.
In summary, Ethereum’s market shows a mix of optimism among large holders and caution from retail investors. Price action in the coming days will likely hinge on whether the $3,060 support level can withstand selling pressure and trigger a potential bounce.
