Ethereum’s Value Sees a Notable Surge
The price of Ethereum came close to reaching the $4,100 mark in the early hours of March 12, but a wave of profit-taking from long-term investors is threatening to halt the rally.
After a remarkable 73% surge in the past 30 days, the Ethereum rally has hit a roadblock at the $4,100 level. Now, the question is whether the bulls can regroup and make another bold push towards the $4,500 milestone, or if the price of ETH will give in and lose support at $4,000.
Within the last 24 hours, long-term investors have traded 167,500 ETH. Unlike Bitcoin, which has entered the price discovery phase, Ethereum still has about a 22% gap to fill before reaching its global peak of $4,878. Essentially, the Ethereum price is facing resistance due to significant historical accumulation clusters.
In the early hours of March 12, the price of ETH retraced 2% from $4,100 to $3,967. On-chain data reveals an unusually high level of trading activity among long-term investors who have been holding their Ethereum since 2021.
The chart provided by Santiment shows the number of recently traded coins that have been held unmoved for 3 years or more. This serves as an indicator of potential sell-offs from long-term investors.
On March 11, investors moved 167,500 ETH that had been dormant since 2021. With the current ETH price of $4,020, these long-term investors have shifted over $1 billion worth of Ethereum in the past 24 hours. When long-held coins start moving as prices approach a major resistance level, it is a clear sign that profit-taking is imminent.
Considering that over $1 billion worth of ETH has flooded the market in the last 24 hours, the Ethereum price could face challenges in maintaining its bullish momentum in the coming days. This could potentially lead to a downward trend towards $3,900.
Data from IntoTheBlock suggests that the ongoing profit-taking spree among the 1.34 million addresses that acquired 469,540 ETH at an average price of $4,100 could shift the momentum in favor of the bears. If this scenario plays out, the price of ETH may slide towards $3,900.
On the other hand, if there is enough market demand to absorb the $1 billion ETH supply, the bulls could hold the $4,000 support and make another bold attempt at reclaiming $4,500.
In conclusion, the Ethereum market is currently facing a critical juncture as profit-taking from long-term investors threatens to disrupt the rally. The future direction of the Ethereum price will depend on whether the bulls can regain momentum or if the bears take control.
