- Ethereum tests resistance at $2,863.01, aligning with the 20 day SMA. A breakout could lead to gains, while failure may cause downside.
- Analysts hold differing views, with concerns over Layer 2 impact and bullish signals from rising addresses and institutional inflows.
- Whale activity surges as a dormant wallet withdraws 4,700 ETH, and a separate 50,000 ETH transfer signals major market movements.
Ethereum’s price movement is volatile as analysts offer differing views on its future move. At press time, ETH was trading at $2,738.04, recovering from a recent low of $2,250. Market data indicates increased activity, with trading volume at 186.91K on February 21.
Ethereum price is testing resistance at $2,863.01, which aligns with the 20 day Simple Moving Average (SMA) of the Bollinger Bands. A breakout above this level could lead to gains, but failure to do so may lead to renewed downside pressure.
#ETH – Will Be The Biggest Underachiever of This Cycle? 📉💔:
— EGRAG CRYPTO (@egragcrypto) February 21, 2025
Maximum Fib target: $6K-$8K. 📈
Honestly, it feels like dirty #BenHinman and his crew are still ##Hodling #ETH alongside the #ETH Maxis.
Layer 2 solutions have siphoned off the real value from #ETH, and when you… pic.twitter.com/DYzLHDBOpe
Analysts Express Contrasting Views
Egrag Crypto has raised concerns about Ethereum’s performance, arguing that it could be the biggest underachiever of the current cycle. According to him, Ethereum’s maximum Fibonacci target is between $6,000 and $8,000.
He suggests that Layer 2 solutions have diverted value away from Ethereum, making other Layer 1 options more attractive due to their speed and cost efficiency. He further claims that Ethereum holders may be waiting for one last liquidity exit before a potential downturn.
However, Ali notes a 12.10% increase in new Ethereum addresses over the past week. This trend suggests continued network growth, which could support future price stability.
The number of new addresses on the #Ethereum $ETH network continues to climb, making a series of higher highs with a 12.10% increase over the past week. pic.twitter.com/oooCtLmeVN
— Ali (@ali_charts) February 20, 2025
On chain data shows major whale movements, with Lookonchain reporting that a dormant wallet became active after approximately 500 days, withdrawing 4,700 ETH worth $12.98 million from exchanges. Additionally, Whale Alert reported a transfer of 50,000 ETH, valued at $139.91 million, between unidentified wallets.
🚨 🚨 🚨 🚨 🚨 🚨 50,000 #ETH (139,905,368 USD) transferred from unknown wallet to unknown wallethttps://t.co/vhmLG34E5U
— Whale Alert (@whale_alert) February 21, 2025
Ethereum ETFs Fresh Inflows
Institutional interest in Ethereum is strong, as evidenced by recent ETF inflows. Lookonchain reported a net flow of 9,368 ETH, totaling $25.9 million.
Fidelity recorded an inflow of 8,997 ETH, valued at $24.87 million, bringing its total holdings to 467,650 ETH, worth approximately $1.29 billion. These inflows indicate ongoing accumulation by large investors despite concerns about Ethereum’s long term positioning in the Layer 1 field.
Ethereum’s price movement is uncertain as it has technical resistance and diverging opinions from market analysts. While bullish factors such as network growth and institutional inflows persist, concerns regarding its long term competitiveness are high.
