Key Insights:
- Ethereum’s price is coiling, setting up for a potential breakout toward $8.5K–$9K.
- Ethereum ICO whale sells $58.14M in ETH, sparking questions on market effects.
- $965.9M in stablecoin inflows signal increased liquidity, possibly leading to price movements.
Ethereum has been stuck in a massive consolidation phase since 2021, with its price movement repeatedly rejecting a key macro trendline. Many market participants are now closely watching for a potential breakout.
As of now, the live Ethereum price stands at $2,911.76, reflecting a 0.74% increase over the past 24 hours. The 24-hour trading volume is approximately $21.91 billion, indicating a healthy level of market activity.
Ethereum’s Long Period of Consolidation
According to Anup Dhungana, since 2021, Ethereum has faced consistent resistance at its macro trendline. As it moves within this narrow range, some experts suggest that it’s in the midst of a significant consolidation phase. Ethereum’s price has not managed to break out and sustain any significant uptrend, but the repeated rejections of the trendline indicate that it is preparing for a potential move.
“Ethereum has essentially been coiling for years,” said one analyst, adding that the eventual breakout, when it happens, could be explosive.
This phase could soon end with a major price breakout, potentially pushing Ethereum toward $8,500 to $9,000. This prediction is based on the potential for a sharp price movement following the long period of sideways trading. Following the price trend, recent activity from an Ethereum ICO whale has also caught attention.
Ethereum Whale Makes a Major Sale
In another notable development, TedPillows noted that a significant Ethereum ICO whale sold $58.14 million worth of ETH. This individual had purchased 254,908 ETH for just $79,000, which is now valued at approximately $757 million. This massive sale has raised questions about the whale’s strategy and the possible effects on Ethereum’s price.
Despite the sale, the market has largely absorbed the transaction without significant price movement. This suggests that there is still strong buying support for Ethereum, even in the face of large sell orders. The whale’s sale could be a signal of profit-taking or a shift in investment strategy, but its long-term effects remain to be seen.
Stablecoin Inflows and Market Liquidity
In addition, Ethereum has recently seen a substantial influx of stablecoins, signaling a rise in liquidity on the network. Over the past 24 hours, $965.9 million in new stablecoin supply was added to Ethereum, according to Artemis data. Such inflows are often seen as an indicator of increasing market activity. This surge could indicate renewed interest from traders, potentially setting the stage for a shift in price momentum.
The stablecoin inflows could also suggest that investors are positioning themselves for further market movements. Stablecoins are typically used to trade into other assets like Ethereum, signaling that investors are preparing for possible price swings in the near future. Ethereum’s ability to handle these large liquidity flows could help it maintain stability during periods of volatility.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/ethereum-coils-since-2021-breakout-to-9k/