On Thursday, March 20th, the Ethereum price recorded a 4% drop and plunged to the $1,973 level. This downtick comes as an immediate counter-attack by sellers after yesterday’s FOMC meeting decision triggered a market-wide recovery. While the overhead selling pressure hints at prolonged correction for the ETH coin, the whale investors continue to show their confidence in the asset’s growth potential.
Key Highlights:
- A negative alignment between the daily Exponential Moving Averages (20<50<100<200) signals the broader market trend is bearish
- ETH whale activity remains strong with 14,217 ETH withdrawn from Binance and deposited into Aave.
- A downsloping trendline in the daily chart governs the current correction trend in Ethereum price as it provides dynamic resistance.
Whale Investors Show Strong Confidence Amid Correction
While the Ethereum price consolidation around $2,000 hints at uncertainty among market participants, whales are making their presence felt once again. According to lookonchain, three prominent Ethereum whales withdrew a significant amount—14,217 ETH, worth approximately $29 million—from Binance earlier today. These massive withdrawals were promptly deposited into Aave, a decentralized finance (DeFi) platform.
Interestingly, the whales took another step, borrowing a substantial amount of $12 million in USDT from Aave. These whales could potentially use these funds to accumulate more ETH, highlighting their confidence in Ether’s growth potential.
The active accumulation trend from whales despite the recent correction hints at buy-the-dip sentiment in the market.
Ethereum Price Needs This Resistance Breakout
For nearly two weeks, the second largest cryptocurrency, Ethereum, has been wavering below the $2,000 level. The recent breakdown below this psychological level and 61.8% Fibonacci retracement level was expected to accelerate the selling pressure and drive further correction.
However, the price shifted sideways and showed investors uncertainty with short-bodied candles. The lack of follow-up on the downside indicates weakness in bears’ conviction which could result in the buyer’s attempt to regain higher prices.
In an optimistic scenario, the Ethereum price could reclaim the $2,100 resistance and prepare to break an overhead resistance trendline. Since mid-December 2024, this dynamic resistance has carried a sustained downtrend for this asset and therefore a potential breakout will signal a change in the market dynamic.
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