- Dormant whale activity signals renewed market volatility and possible ETH trend reversal
- Ethereum nears key resistance as double top and support line battle for control
- MACD and RSI favor bulls, but rising overbought risks may limit further upside
Ethereum’s price action is reaching a pivotal moment. Recent market developments, including massive whale transactions and strong technical signals, suggest significant volatility ahead. As of press time, the price of Ethereum (ETH) stands at $2,585.70, showing a 3.55% increase in the past 24 hours and a 9.05% gain over the past week.
While these figures suggest a short-term recovery, several underlying factors hint at both bullish opportunities and bearish threats that traders must closely monitor.
Whale Movement and Onchain Metrics Signal Market Shift
Onchain Lens, an analytics firm, recently reported that a long-dormant whale has resurfaced after four years. This whale moved 97,001 ETH worth around $248.64 million into three separate wallets.
Additionally, 137 ETH, valued at $351,000, was transferred to the Bitstamp exchange. This wallet originally withdrew 101,390 ETH from Binance and Bitstamp between four and five years ago. At that time, the total value stood at $67.18 million. Today, that holding has appreciated to a $192.38 million profit, revealing the immense gains long-term holders are realizing.
Besides these large transfers, the ETH spot inflow/outflow data shows continued net outflows dominating since January. Despite recent price increases, this suggests that profit-taking persists.
However, renewed accumulation in May signals investor confidence might be returning. Such divergent behavior between outflows and price recovery often foreshadows a potential shift in market sentiment.
Technical Analysis: Support, Resistance, and Breakout Risks
Carl Moon, a technical analyst, highlighted Ethereum’s precarious position. ETH is trading just above an ascending support line within a larger ascending triangle.
If this support breaks, prices could sharply drop toward the $2,200 level. That would represent a significant downside of roughly 10% from current levels. However, if support holds, Ethereum could maintain its bullish structure and retest the $2,800–$3,000 resistance zone.
The chart also shows a possible double top formation near $2,700. This price level has consistently rejected further advances. A confirmed breakout above this resistance could trigger a rally, but a breakdown would likely lead to accelerated selling.
Momentum Indicators Point to Bullish Bias
The MACD indicator supports short-term bullishness. The MACD line sits above the signal line, and the histogram is positive. This combination reflects upward momentum.
Meanwhile, the RSI is at 65.03, approaching the overbought zone. A level of 69.45 signals the market might be overheating in the short term. However, it doesn’t guarantee an immediate reversal.
