TLDR
- Large whale deposited 10,195 ETH worth $25.67 million to Kraken exchange, typically indicating sell intent
- Current price trades near $2,550 with key support at $2,460 and resistance at $2,600
- Trading volume remains low during recent recovery, suggesting correction may be short-lived
- Retail activity missing at $2,800 peak indicates Ethereum still early in bullish phase
- Taker buy orders dominated throughout May despite recent price weakness
Ethereum experienced a pullback from its recent $2,800 peak, raising questions about the sustainability of its rally. The correction gained attention after a large whale wallet moved tokens to a major exchange.
An ETH whale recently deposited 10,195 tokens worth $25.67 million to the Kraken exchange. Such moves typically signal an intent to sell, contributing to downward pressure on the price.
The recent correction was influenced by a rise in Taker Sell Volume. However, analysis shows that buyers have remained dominant over longer time periods.
Ethereum price found support at $2,460 and started a fresh increase. The token recovered above the $2,500 and $2,520 resistance levels during its bounce attempt.
The bulls pushed the price above the 23.6% Fibonacci retracement level. This level was calculated from the downward move from the $2,730 swing high to the $2,463 low.
Bears became active near the $2,600 resistance zone. The price failed to clear this level and reacted to the downside.
Ethereum now trades near $2,550 and the 100-hourly Simple Moving Average. A break occurred below a connecting bullish trend line with support at $2,555.
Trading Volume Patterns Provide Clues
Analysis of spot retail activity reveals important patterns. Local tops have historically been accompanied by increased trading activity, with March 2024 serving as a recent example.
When ETH retested the $4,000 mark in December, retail activity remained subdued. The recent recovery to $2,800 showed similar characteristics with missing retail participation.
This pattern suggests Ethereum remains early in its bullish phase. The absence of retail frenzy at current levels differs from previous market peaks.
The spot volume bubble map tracks trading volume across all exchanges. Rapidly increased trading volume typically points toward market pullbacks.
This pattern occurred in December 2024 but has not repeated during the current cycle. The quick recovery from $1,700 to $2,800 since April came with reduced trading volume.
Buyer Dominance Continues Despite Correction
Profit-taking activity has not increased substantially, representing a positive development for bulls. The low trading volume does not rule out potential price pullbacks entirely.
The spot taker CVD metric tracks the cumulative difference between market buy and sell volume over three months. This metric remained green and rising throughout May.
Rising taker CVD indicates that buy orders dominated sell orders. This suggests buyers still control the market despite cooling volume levels.
The buyer dominance makes any Ethereum price retracement likely to be shallow rather than deep. Market structure supports the view that current weakness may prove temporary.
On the upside, price faces resistance near the $2,580 level. The next key resistance sits at $2,600, close to the 50% Fibonacci retracement level.
The first major resistance appears near $2,650. A clear move above this level might send the price toward $2,720 resistance.
If Ethereum fails to clear $2,600 resistance, it could start a fresh decline. Initial support on the downside sits near the $2,550 level with major support at $2,520.
A clear move below $2,520 support might push the price toward $2,460 support. Further losses could send the price toward $2,420 or even $2,350 support levels.
Technical indicators show mixed signals with the hourly MACD losing momentum in the bullish zone while RSI trades below the 50 level.
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