Key Insights
- Ethereum price failed to rise after a $140 million BitMine purchase, showing demand is still weak.
- Long-term holders increased selling from 864,895 ETH to 904,068 ETH, adding pressure near $3,000.
- Ethereum price risks a drop toward $2,620 if $3,000 breaks, while strength only returns above $3,600.
Ethereum price was up around 0.5% at press time. While many cryptocurrencies dipped, Ethereum did not correct that much. This shows it is holding better than some other coins for now.
Still, holding flat does not mean strength. A very large buy failed to move the price higher. At the same time, big holders are unsure, and long-term holders have started selling again. These signs suggest Ethereum price may still face pressure in the coming days.
Big $140M Buy Fails To Lift Ethereum Price
Tom Lee is a well-known market expert and the head of research at Fundstrat. He is also connected to BitMine, a crypto mining and investment company.
BitMine recently bought around $140 million worth of Ethereum. This is a very large purchase. Normally, buying of this size helps push prices higher or at least creates strong support.
That did not happen this time.
After the buy, the Ethereum price stayed near the same level. It did not rise. This tells traders something important.
One large buyer cannot change the market alone right now. Many other buyers are still waiting or staying cautious.
This is why the Ethereum price remains stuck near $3,000 instead of moving higher. Demand exists, but it is not strong enough yet to start a rally.
Whales Look Unsure While Long-Term Holders Increase Selling
Whales are very large Ethereum holders. Their actions often affect price direction. On Dec. 15, whale wallets increased their Ethereum holdings.
This looked positive at first. But the buying did not continue. Soon after, whales started reducing their holdings again.
This shows uncertainty. Whales are not fully confident about where the Ethereum price is going next. When whales keep changing direction, prices usually struggle to move higher.
Long-term holders are also sending warning signs. These holders usually keep their coins for a long time and do not sell often.
On Dec. 14, long-term holders sold about 864,895 ETH. By Dec. 16, selling increased to 904,068 ETH. This is a rise of around 4.5% in selling in just two days.
When long-term holders sell more, it often means they are becoming careful. This adds extra pressure on price, especially when Ethereum is already trading near an important level.
Chart Levels Show Risk if Ethereum Price Slips Lower
Ethereum price is trading close to the lower edge of a rising wedge pattern on the chart. This area is sensitive.
When the price stays near the bottom of this pattern, even small selling can cause a bigger drop.
The $3,000 level is now very important. If the ETH price falls and stays below this level, the next strong support is near $2,620. That would mean a drop of about 11% from current prices.
For the situation to improve, the Ethereum price needs to move higher. A clear break above $3,600 would show buyers are returning and reduce the risk of further downside.
Until that happens, the picture remains weak. Whales are unsure, long-term holders are selling more, and even a $140 million buy could not lift the price. Ethereum price is holding for now, but the risk of a deeper drop is still present.