Will Whale Wake-Ups and Government Transfers Heat Up the Ethereum Charts?

• Ethereum is trading at its support floor around the $2.5K zone.
• The market has seen $32.95 million worth of ETH liquidated.

With the neutral market sentiment, the crypto assets display a mix of breakthroughs and failures. The largest asset, Bitcoin (BTC), is trading at around $108.3K, while the largest altcoin, Ethereum (ETH), confronts sturdy bearish obstacles in the battle to reclaim the $3K mark. It has been four years since the asset last reached its all-time high.  

ETH’s $2.5K zone serves as the support floor, and a breakout could trigger the bulls to stay and invite more upside correction. The altcoin has chosen to trade on the downside, dropping over 0.97%. In the early hours, ETH has visited its daily high of $2,586.74. With the bearish encounter, the asset plunged to a low of $2,517.90. 

At the time of writing, Ethereum trades at around $2,551, with the market cap reaching $308.31 billion. Moreover, the daily trading volume has surged by over 24.97%, touching $18.64 billion. Also, the market has witnessed a liquidation of $32.95 million worth of Ethereum during the last 24 hours. 

As per on-chain data, an early Ethereum ICO wallet was reactivated after nearly ten years, transferring 1,140 ETH. The ETH was initially acquired during the 2015 ICO for $353, obtained at around $0.31 per token. Also, the U.S. Government transferred 86.56 Ethereum to Coinbase Prime. Currently, the government holds 65,156 ETH, valued at around $166 million.

Where is Ethereum Headed Next?

Assuming Ethereum’s active downside trading pattern continues, the price might slip further and test the $2,544 support. With a steep bearish correction, ETH could trigger the death cross to take place, and the price may go down toward the $2,530 zone, acting as a key level for the price action.  

Upon reclaiming the lost bullish momentum, the ETH price might ascend and hit the $2,557 resistance area. If the uptrend gains traction, the bulls could push the golden cross to unfold. With this positive outlook, Ethereum may likely target a bullish price range and climb above the $2,564 mark. 

In addition, the technical analysis of Ethereum exhibits that the Moving Average Convergence Divergence (MACD) line is below the signal line. This typically infers the asset’s bearish phase and the weakening price movement. Besides, the Chaikin Money Flow (CMF) indicator at 0.13 points to a positive inflow of capital. This supports the continued upward momentum, with solid buying pressure in the market. 

ETH’s daily Relative Strength Index (RSI) value of 55.22 suggests a moderate bullish sentiment, reflecting the potential for a stable uptrend with room for further gains. However, the altcoin’s Bull Bear Power (BBP) reading of 4.91 indicates strong bullish dominance in the market, driving the ETH price higher.

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