TLDR
- Ethereum is in a holding pattern, trading within the range of $2,650-$2,750. The $2,800 level remains a formidable barrier, yet some analysts foresee a possible climb to the $3,000-$4,000 zone if certain technical formations play out.
- The recent accumulation of 430,000 ETH by large entities underscores a robust institutional interest and a more optimistic outlook on the cryptocurrency's performance.
- A solid 74% of those holding Ethereum have done so for over a year, with the majority, around 62%, currently seeing profitable returns.
- The SEC is currently evaluating a proposal from 21Shares to launch an Ethereum spot ETF, which notably includes elements related to staking.
- Transactions topping $100,000 have surged to $37.59 billion on a weekly basis, with a notable net withdrawal of $12.45 million from exchange platforms.
Ethereum's price is undergoing a critical period of steadying at $2,750, as whale investors show keen interest by snapping up 430,000 ETH in a matter of days. As the second-largest cryptocurrency by market cap, it's persistently probing key resistance points, capturing substantial attention from big investors and institutional stakeholders.
New insights into the market reveal that significant Ethereum players have been aggressive in expanding their positions, acquiring 430,000 ETH within a three-day period. The price stability above $2,600 suggests growing confidence among these influential traders.
The trading environment has seen some shifts, with volumes dropping by 32.48% to $23.14 billion. Yet, open interest has seen a minor bump, rising by 1.14% to $24.65 billion, indicating traders are still holding on to large positions despite decreased trading.
In the realm of Ethereum derivatives, there's a mixed bag. Option trading has seen a 4.10% drop from the last month's numbers, now recorded at $622.55 million. However, open interest remains stable at $6.85 billion, hinting that traders are still heavily active.
On Binance, traders are leaning towards a bullish stance, as shown by the 3.44 ratio of open positions. Recent fluctuations have led to liquidations of $19.31 million in just a day, with short sellers taking a hit to the tune of $11.18 million.
Technical Analysis
Technical charts are suggesting that Ethereum is approaching a significant point. The RSI is presently at 37.21, which indicates some weakness but stays clear of the oversold zone. The MACD histogram, meanwhile, reads -138.3, hinting at decreasing bearish pressure.
Reports from blockchain research firm IntoTheBlock reveal that 62% of Ethereum holders are profiting at the moment, while 33% have incurred losses. Notably, a steadfast 74% have been holding their Ethereum for over a year, reflecting strong belief in its long-term potential.
Wealthy entities now control 54% of Ethereum's overall supply, illustrating how institutional and affluent investors dominate holdings. The cryptocurrency moves in close tandem with Bitcoin, demonstrated by a correlation coefficient of 0.96.
Exchange stats highlight a withdrawal excess of $12.45 million in ETH over the past week, exceeding deposits. Such trends typically point to a preference for long-term holding rather than trading. Weekly transaction volumes for deals over $100,000 have hit $37.59 billion, signifying vigorous institutional engagement.
The SEC’s ongoing review of 21Shares’ Ethereum The submission of a spot ETF application has added another layer of intrigue to the market. With inclusions like staking features, the proposed ETF could present new revenue streams for institutional investors.
Market watchers are narrowing their focus on the $2,800 resistance mark, a stubborn threshold for a while now. Breaking past this point could potentially steer the path towards the 200-day Moving Average, around $2,930.
$ETH Could we see a breakout from this symmetrical triangle anytime soon? The goal is to reach $3,055.
Trade #Ethereum on Bitunix – https://t.co/GzXaATj3Ps Score an extra $100 bonus after making your initial $500 deposit! pic.twitter.com/xmV0oNuPYy
— Carl Moon (@TheMoonCarl) February 20, 2025
It's crucial for Ethereum to hold on to support levels between $2,300 and $2,400. Falling below these could reignite a selling wave, driving prices down further.
Trading at a sluggish 1.15K volume level. ETH This hints at a lack of decisive movement in the short run. Analysts believe a ramp-up in trading volume would be key to validating any upward movement beyond the $2,800 mark.
Data on recent liquidations reveals short positions have faced $4.81 million in downfalls in the past 12 hours, possibly pointing to shifting market attitudes towards buying.
Crypto expert Carl Runefelt has spotted a symmetrical triangle forming on Ethereum's daily chart, projecting a potential forecast of $3,055 if successfully executed.
