TLDR:
- Ethereum price recovering, currently trading above $1,850 and the 100-hourly SMA
- ETH facing resistance at $1,900-$1,920 level (61.8% Fibonacci retracement)
- An Ethereum early investor sold 2,001 ETH for $3.82 million, securing $8.66 million profit
- Bulls need to clear $1,920 to target $2,020-$2,050 range
- If resistance holds, ETH could see decline toward $1,845, then $1,800
Ethereum is currently showing positive momentum while navigating key resistance levels, even as one early investor decided to lock in substantial profits. The second-largest cryptocurrency has been moving upward after finding support, but faces several technical hurdles that could determine its short-term trajectory.
ETH has managed to maintain support above the $1,750 zone and initiated a recovery wave, following Bitcoin’s lead. This upward movement successfully cleared several resistance levels at $1,820 and $1,850.
The bulls pushed the price even higher, breaking through the $1,880 resistance zone. This move took ETH above the 50% Fibonacci retracement level of the recent downward wave from the $2,032 swing high to the $1,767 low.
However, the upward momentum has encountered obstacles near the $1,920 zone, where sellers appear to be defending this level actively.
Technical Indicators Point to Bullish Structure
Currently, Ethereum is trading above $1,850 and the 100-hourly Simple Moving Average, indicating that the overall structure remains bullish in the short term.
A supporting bullish trend line has formed with support at $1,860 on the hourly chart of ETH/USD. This provides a technical foundation for continued upward movement.
On the resistance side, ETH is struggling near the $1,900 level. The next key barrier sits at $1,920, which coincides with the 61.8% Fibonacci retracement level of the recent downward move.
If buyers can overcome these resistance levels, ETH could target the $1,970 mark. A clear break above $1,970 might send the price toward the $2,020 resistance.
Should Ethereum break above $2,020, we could see further gains with potential targets at $2,050 or even $2,120 in the near term.
Early Investor Exits Position
In a notable market development, an early Ethereum investor (known as an “Ethereum OG”) recently sold their remaining 2,001 ETH for $3.82 million, as reported by cryptocurrency analyst Crypto Rover.
This sale resulted in an $8.66 million profit for the early adopter. However, the timing wasn’t ideal, as the seller missed the opportunity to cash out at the peak value of $23 million.
The transaction occurred at a price of $1,909 per ETH and was recorded at 14:35 UTC. This event has sparked discussions about changing dynamics in the Ethereum market, with suggestions that new large-scale investors are ready to take more prominent roles.
Following this large sale, Ethereum’s price experienced a slight dip of 0.5%, dropping to $1,899 at 14:45 UTC. The transaction was accompanied by a surge in trading volume, with 1.2 million ETH traded in the hour after the sale.
The ETH/USD trading pair saw a 20% increase in trading activity compared to the previous hour, while the ETH/BTC pair showed a 15% increase in volume, indicating heightened interest in Ethereum relative to Bitcoin.
Potential Downside Scenario
If Ethereum fails to clear the $1,920 resistance level, another decline could begin. The initial support on the downside is near the $1,860 level and the trend line mentioned earlier.
The first major support level is positioned near the $1,845 zone. A decisive move below this support might push the price toward the $1,800 level.
Further losses could send Ethereum toward the $1,765 support level in the near term, with the next key support positioned at $1,710.
The hourly MACD for ETH/USD is losing momentum in the bullish zone, while the hourly RSI remains above the 50 zone, suggesting a mixed short-term outlook.
On-chain metrics revealed that active addresses on the Ethereum network increased by 5% in the hour following the early investor’s sale, indicating heightened network activity.
With market dynamics constantly shifting, traders and investors should keep a close eye on these key levels as Ethereum continues to navigate this critical price range.
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