Ethereum price is trading below $3,000 after failing to sustain a short-lived recovery. The market remains cautious as ETH consolidates within a narrow range.
Bulls are looking at breaking out of the market at a high of above $3,050, which can indicate the market will move upwards.
Nevertheless, when the whale wallets start selling off, ETH may fall to as low as $2,800. The mood of the market has come to rely on big players and the ability of buyers to recapture the situation at the higher level above $3,000.
Whale Accumulation Signals Ethereum Support Zone Strength
The presence of Ethereum whales is an indicator of a solid support level around the prevailing market rates. On-chain records indicate that the accumulation of large holders is steady since June despite more price volatility.
The average level of purchase they have realized has increased to approximately $1,560 to almost $3,000.
This gradual growth is an indication of confidence among large investors in the recent consolidation cycles. Traditionally, whales are more likely to protect areas within their average cost.
This range may prove to be challenging as far as sharp declines are concerned in areas below this range as long as accumulation occurs.
Ethereum Price Faces Key Test After Losing $3,000 Level
The Ethereum price is in a weak position as it has broken lower than already supported areas. The recent chart data indicate that ETH does not have a deep area of demand where it is.
Market observers emphasize the crucial level of $3,000 that would cause a change in the short-term trend.
A long-term move beyond this area can also be a good indicator of a revived purchasing intention. Weakness below $3,000 would, however, increase downward force. Then, Ethereum price can drop to the level of $2,800.
What’s Next For ETH Price?
The ETH price traded at $2,939, indicating a bearish continuation as it hovers below the critical $3,000 mark. The level used to play a supportive role, but now becomes a pretence but strengthening the downside risk.
The MACD line continues to be below the signal line, with both trending further into the negative region. This is a confirmation of selling pressure and bearish continuation.
The RSI stands at 36, just above the oversold area, and lack of a bullish divergence. This implies that there is little upside unless an upside trend is formed.
Source: ETH/USD 4-hour chart: TradingviewA breakout of above $3,000 with good volume may lead to a re-test of the Ethereum price at $3,100. Most importantly, the bullish momentum might reverse because the Ethereum price outlook in the long term is still positive.
A further rejection, less than $3,000, might induce a slide to $2,800, and even to $2,650 in the event that that too fails.
Source: https://coingape.com/markets/ethereum-price-outlook-hinges-on-whale-moves-dump-below-2800-or-reclaim-above-3k-next/
