Ethereum Whales Stack 449K ETH in a Day, but $1,895 Resistance Holds Firm

A few days ago, Ethereum saw a historic single-day inflow of 449,000 $ETH into accumulation addresses – wallets that have never spent funds. This marks the highest daily inflow since 2018, suggesting that these Ethereum whales are optimistic about Ethereum’s future, even though many remain underwater with a realized price of $1,981. This means that the purchased prices are higher than the current market price. Despite short-term losses, these holders are not panicking, and they remain convinced of Ethereum’s long-term potential.

$ETH Struggles at $1,895 Resistance

Judging by technical analysis, Ethereum faces big resistance at $1,895, where approximately 1.64 million $ETH is held by investors from November 2024. A decisive close above $2,142 is needed to break the current pattern of declining highs and lows, which would signal a potential bullish reversal.

Also, active Ethereum addresses have increased by 10%, indicating growing network engagement. However, DeFi activity remains subdued, with declining DEX volumes.

There’s been some major whale activity lately as well. A long-term Ethereum holder recently moved $27.6 million worth of $ETH after over 900 days of inactivity. The move caused a short-term dip in Ethereum’s price, but it didn’t last long before the cryptocurrency stabilized.

A Sign of Good News?

Despite Ethereum trading approximately 57% below its all-time high of $4,100, the recent accumulation by long-term holders and increased network activity might suggest a foundational confidence in its long-term value.

Then, upcoming upgrades such as the Pectra upgrade could also play a role in boosting Ethereum. Scheduled to release on May 7 on the mainnet, it aims to enhance scalability, reduce transaction fees, and improve staking efficiency.

Short-Term Outlook: Resistance is Key

Still, the mentioned resistance levels and subdued DeFi activity indicate that while the groundwork for a bullish trend seems to be forming, trouble may be brewing and certain challenges remain.

In the short term, $ETH faces technical resistance that must be overcome to reverse its current downtrend. Traders are closely watching the $1,895 resistance level, but failure to break through can prolong the consolidation phase or even trigger further declines. On the other hand, a confirmed close above $2,142 would be a strong signal for a bullish turnaround.