Ethereum Whales Buy the Dip: Will the Ethereum Price Rise?

The recent market activity around Ethereum has attracted a lot of attention, especially after a large purchase of Ethereum by a well-known whale investor. For the third time this year, the whale made headlines as it bought 22,919 ETH for an average of $3,368, amounting to $77.2 million.

Whale activity and strategic moves

This investor averaged 1.1 swing trades per day since August 12th, with an Ethereum (ETH) and Wrapped Bitcoin (WBTC) swing trade, where he achieved a win rate of 84%. Of those trades, only 21 turned a profit, earning the whale $4.57 million.

On the contrary, they have been buying dips and benefiting from price fluctuations in the short term, and their latest acquisition confirms their faith in Ethereum’s future prowess.

This pattern of opportunistic buying that continues during periods of price consolidation or mild decline, as seen with this latest purchase, is also a common trend in the industry.

Keith’s investment in Ethereum trading in a limited zone is between $3,306 and $3,375, expecting continued price pressure in the near term. But the enthusiasm will not last unless broader market conditions and technical resistance levels are favorable.

Ethereum price Current state of the market

Over the past 24 hours, Ethereum has seen slight downward pressure to $3,386, down roughly 1%. This is happening during a broader consolidation after the big drop in early December. The total market capitalization of cryptocurrencies is 407.95 billion dollars.

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The 24-hour trading volume of $25.39 billion reflects an increase in trading activity of more than 40%. The increase in volume may also mean that traders are preparing for Ethereum’s next significant move, with volatility rising.

The recent decline does not mean that Ethereum can digest this price. However, the fact that the utility token is now floating well above its critical support figure of $3,300 shows that it may be resilient enough to withstand the selling pressure that has exposed its recent lows.

However, the cryptocurrency is still limited by the upward resistance line at the $3,400 level. Overcoming this obstacle would be crucial for a more significant jump.

For technical reasons, the Ethereum price movement shows a consolidation phase, which we hope will lead to a breakout in any case.

The 4-hour chart shows some resistance at $3,300-$3,400 and some really strong resistance levels lingering at $4,052 and $4,097. If Ethereum can break above $3,400, supported by heavy volume, a new test of those higher resistance levels can be made.

Currently, the Money Flow Index (MFI) of 51.11 is in neutral territory. This implies a neutral, or at least weighted, balance between buying and selling pressure so that the market becomes exposed to catalysts from outside that would tip the balance. Additionally, it indicates that Ethereum has not yet been in overbought or oversold territory.