Ethereum price started a recovery wave after forming a base above the $4,200 zone. ETH broke the $4,265 and the resistance level of $4,320. Bulls also cleared the 50% Fib retracement of the major correction from $4,660 to $4,209.
A break above a key bearish trend line with resistance at $4,385 appeared on the hourly ETH/USD chart. Ethereum is now trading above $4,420 as well as the 100-hourly Simple Moving Average. Immediate resistance is seen near $4,500 or the 61.8% Fib retracement of the last swing, indicating cautious optimism.
Ether’s recovery is reinforced by notable buying among major holders. Data from Santiment shows accumulation from “millionaire” and “small billionaire” whales, along with active sharks holding between 1,000 and 100,000 ETH. During the past five months, these investors boosted positions by 14%, indicating optimism about the future of Ethereum.
Analysts note that this accumulation suggests larger investors anticipate price surges. Consistent buying demonstrates belief in Ethereum’s long-term growth. If buying pressure continues, ETH may overcome the $4,500 resistance. Market focus remains on whether sustained whale activity can drive the price beyond key short-term levels.
Also Read | Ethereum (ETH) Eyes $4,450 Breakout While Downside Targets Stay At $3,700
If Ethereum fails to go through the price of $4,500, it will encounter a new fall. The primary support lies at $4,400, with key support close to $4,360. If the price slips below $4,360, ETH could reach $4,315, and additional losses could aim for $4,260.
Ether derivatives market indicates lower activity. Weekly trading volume fell by 17.12% to $89.17 billion, with open interest lower by 0.50% to $58.27B. Options volume slid by 10.99% to $1.67B, but options open interest increased by 1.30% to $17.29 billion, indicating prudent hedging despite fading short-term momentum.
The OI Weighted ratio is at 0.0042%, indicating minimal market position adjustment. Speculative investors are reducing wagers but maintaining slight exposure.
Overall, the derivatives market is cautious, indicating waiting-and-seeing as the cryptocurrency consolidates and eyes its next key movement above the resistance regions.
Also Read | Ethereum Poised for Bullish Reversal After Investors Return to Accumulating
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