- Ethereum price struggles at a weekly high after a five-day winning streak, hovering within a seven-week bearish trend channel.
- ETH whale holdings hit a record 21 million, 100K+ Ethereum holders possess 4.3 million coins to mark strong accumulation.
- U.S. spot ETH ETF faces the first weekly inflow in five weeks, the biggest since early October.
- Descending trend channel and bearish DMI signals highlight $3,120 for the ETH bull’s return.
Ethereum (ETH) price remains sidelined around $3,020-$3,030, after hitting a weekly high of $3,071, as bulls take a breather following a five-day winning streak early Thursday. In doing so, the biggest altcoin portrays the market’s holiday mood on Thanksgiving Day.
With this, the ETH price wobbles inside a seven-week descending trend channel bearish chart formation while eyeing the first weekly gain in five, despite facing the biggest monthly loss since February and a three-month downtrend.
Notably, Ethereum’s latest price action becomes interesting as it rebounds from the 61.8% Fibonacci ratio of its April-August rally, also known as the “Golden Fibonacci Ratio”, amid strong accumulation from the key players.
That said, wallets holding 10K to 100K and 100K+ ETHs, collectively known as whales, have reported strong accumulation and justified the altcoin’s latest price recovery. Adding to the bullish bias is the weekly inflows into the U.S. Spot ETH Exchange-Traded Fund (ETF).
Additionally, an uptick in the trading volume and almost steady market capitalization (market cap) also underpin optimism surrounding the second-largest cryptocurrency. According to Santiment, Ethereum’s daily trading volume stalls a two-day downtrend while rising to $21.96 billion by press time. Meanwhile, the ETH market cap steadies near the weekly high of $365.45 billion, close to $365.31 at the latest.
Still, bearish signals from the Directional Movement Index (DMI) momentum indicator and the presence of multiple upside hurdles challenge the ETH bulls.
Let’s read the details!
Record Whale Holdings Lure ETH Bulls
On Tuesday, crypto data miner CryptoQuant came out with interesting statistics about addresses (wallets) holding between 10,000 and 100,000 ETH, as well as the larger 100,000+ ETH wallets.
As reported, the total balance of wallets holding between 10K and 100K ETHs jumped to a record high while crossing the 21.00 million threshold. More importantly, the 100K+ ETH holders marked a total balance of 4.30 million.
Meanwhile, CryptoQuant also mentioned that data from Binance shows a steady decline in the Ethereum reserves since September, to nearly 3.764 million ETH by November.
Elsewhere, the intelligence firm Arkham shared the news of a considerable buy from an “OG Whale” who previously made $200 million by selling before the October 10 crash. Arkham’s X post mentioned that the trader added $10 million to its existing long position, bringing the total ETH buy positions worth $44.5 million.
The reduction in the exchange reserves reflects the ETH’s movement towards cold storage or staking contracts, which in turn joins a strong whale accumulation, to underpin bullish bias surrounding Ethereum.
U.S. spot ETH ETFs Also Face a Return of Inflows
Apart from the buzz surrounding the whale activity and ETH exchange reserves, an improvement in the ETF inflow also attracts the ETH buyers.
On Wednesday, November 26, the U.S. Spot ETH ETFs reported the fourth consecutive daily inflow, worth $60.82 million. With this, the weekly ETH ETF fund flows brace for the first weekly inflow in five, as well as the biggest inflow figures since the week ending on October 10.
Technical Analysis
Alongside the on-chain catalysts, Ethereum’s technical analysis also favors the quote’s latest recovery as it defends the key Fibonacci support despite bearish signals from the DMI momentum indicator. However, the quote still has an important resistance to break before restoring the bullish outlook.
Ethereum Price: Daily Chart Tests Sellers
On the daily chart, Ethereum approaches a seven-week descending trendline resistance surrounding $3,120, forming part of the multi-week bearish trend channel, as it extends recovery from the 61.8% Fibonacci ratio of $2,748, also known as the “Golden Fibonacci Ratio”.
Notably, the DMI’s Average Directional Index (ADX, red) line tops the Downmove (D-, Orange) and the Upmove (D+, Blue) lines in that order and stays well past the 25.00 neutral level to portray a presence of strong bearish momentum.
With this, Ethereum upside hinges on a clear breakout of the $3,120 hurdle, which in turn will defy the bearish chart pattern and propel the ETH price towards the 200-day Exponential Moving Average (EMA) hurdle of $3,517.
That said, the 50% Fibonacci Retracement and 100-day EMA, respectively near $3,170 and $3,990, act as additional upside filters to watch for the ETH bulls.
Alternatively, ETH pullback may initially aim for the 61.8% Fibonacci ratio of $2,750 before the stated bearish channel’s bottom surrounding $2,430.
Below that, the 78.6% Fibonacci retracement level of $2,150, the $2,000 threshold, and April’s bottom of $1,385 will be in the spotlight.
Conclusion
Ethereum price traces the crypto market optimism while gaining support from the major players. However, the buyers face a crucial test around $3,120, and a successful breakout could challenge the recent threat to the broad bullish outlook surrounding the second-largest cryptocurrency.
Also read: Cryptocurrency Weekly Price Prediction: BTC, ETH, and XRP Tumble on Fed Buzz; More Pain Ahead?
