Ethereum (ETH) is trying to regain the important $4,000 level after experiencing a recent pullback, with investors taking more than $800 million in profits on Friday. The cryptocurrency saw heavy long liquidations earlier this week, with large exchanges such as Binance, Bybit, and OKX having billions removed from open interest. The weakening leverage has influenced the rise in caution among investors, while whale investors are taking advantage of the drop to stock up on large quantities of ETH. Although they have hit resistance at $4,100, Ethereum’s price is stabilizing based on the 100-day Simple Moving Average and the re-entry of smart money buying.
KEY LOOKOUTS
• ETH is trying to recover the psychological $4,000 level after bouncing off the 100-day SMA, indicating renewed bullish pressure.
• The $4,100 level still poses a critical barrier; a break above it would potentially open the way to $4,500.
• The 100-day SMA and $3,500 levels are crucial support, and bulls may find potential to buy there.
• Smart money and whale wallets are enthusiastically buying the dip, which reflects long-term investors’ confidence despite the recent liquidations.
Ethereum (ETH) is bouncing back as it tries to recover the $4,000 mark after a week of profit-taking and high liquidations. Investors secured more than $800 million worth of gains, leading to a significant reduction in open interest in top exchanges such as Binance, Bybit, and OKX. Although the market has retreated, whale investors and savvy money have jumped in, taking large ETH positions. With the 100-day SMA acting as key support and resistance around $4,100, Ethereum’s near-term direction will simply be a function of whether bulls are strong enough to keep the momentum going and cross key levels.
Ethereum (ETH) is trying to reclaim the $4,000 level after traders realized more than $800 million in profits. Whales buying and support at the 100-day SMA give hope, with resistance around $4,100 being a major challenge.
• Ethereum traders made more than $800 million in profits on Friday.
• ETH’s open interest dropped steeply following two large long liquidation incidents during the week.
• Binance, Bybit, and OKX experienced heavy leverage reductions, with billions erased.
• ETH is trying to regain the $4,000 psychological level after rebounding from the 100-day SMA.
• Resistance is seen at $4,100, with a possible target on the upside of around $4,500.
• Wise money and whale investors are enthusiastically buying the dip, collecting significant ETH.
• Important support levels still sit at the 100-day SMA and $3,500, offering potential areas of buying by the bulls.
Ethereum investors recently took in more than $800 million in profits, a sign of a wave of market activity and prudent profit-taking. The large liquidations in the first half of the week resulted in a sharp reduction in open interest on major exchanges, prompting traders to re-evaluate their positions. In spite of recent volatility, wise money and whale investors have expressed faith by taking large positions in ETH, an indication of ongoing enthusiasm for long-term prospects of the cryptocurrency.
ETHEREUM Daily Chart Price
SOURCE: TradingView
This revived investor interest reflects the increasing interest Ethereum is attracting from both retail and institutional investors. With huge volumes of ETH transferring between wallets and long-term investors coming back to the market, the general mood seems centered around strategic accumulation. Market observers are closely monitoring these patterns, as they show that investors are taking a thoughtful approach to positioning themselves in the face of evolving market conditions.
TECHNICAL ANALYSIS
Ethereum is trying to recapture the $4,000 level after hitting a support on the 100-day Simple Moving Average (SMA). The nearest resistance is around $4,100, a level that has proven to be a barrier in recent times. Breaking above here could set the way for $4,500, which lines up with the 50-day SMA. On the negative side, the 100-day SMA and the $3,500 level act as important support levels, offering possible areas for buyers to enter and stabilize the market.
FORECAST
Ethereum’s short-term outlook indicates a possibility of an upward movement if the bulls are able to sustain momentum above the $4,000 mark. A successful close and break above the $4,100 resistance level could lead to additional gains towards $4,500 on backed by fresh buying from whale investors and smart money accumulation. Such a trend may bring in further market participation and support bullish sentiment.
On the negative side, if Ethereum is unable to maintain the 100-day SMA or the $3,500 support line, it might be subject to more selling pressure. Below these important levels, there might be cautious trading and lower market confidence, possibly causing more consolidation or a short-term drop before the buyers come back in.
