Just as Ethereum price has been showing strength above $3,500 levels, selling by Ethereum whales picked up once again. The heavy ETH offloading to exchanges by whales has caught investors’ attention on whether the profit-booking begins even before reaching $4,000. Notably, Ethereum co-founder Jeffrey Wilcke also dumped a staggering 20,000 ETH worth $72.5 million.

Ethereum Price Breakout to $4000 Faces Headwinds

Popular crypto analyst Rekt Capital shows the latest ETH attempt to breach the crucial $3,700 resistance. The analyst added that Ethereum price needs a strong weekly close above this level to confirm a breakout. Only after this, ETH Price rally to $4,000 and beyond can continue.

Rekt Capital described the recent ETH price action as a “picture-perfect rejection” from the resistance, emphasizing that Ethereum is not ready to break out just yet.

Another popular analyst CrediBULL Crypto points out a critical resistance level in the ETH/BTC pairing. With the recent upward momentum, this pair is approaching the first “trouble area”. The analyst suggests that a rejection at this point, coupled with a potential 10% correction in Bitcoin, could push Ethereum price toward a significant buy zone between $2,700 and $2,800.

While long-term spot holders may opt to hold through this short-term volatility, CrediBULL emphasizes that traders should watch the $2,700-$2,800 range closely for potential entry opportunities.

One thing that brings some optimism is the rise of ETH’s funding rates. Funding rates, a crucial indicator of sentiment in the futures market, have seen a notable rise in recent weeks. This uptick signals growing bullish momentum among traders and investors as Ethereum’s price continues its upward trajectory.

ETH Whale Dumping on the Rise

Ethereum co-founder Jeffrey Wilcke made headlines today after transferring 20,000 ETH, valued at $72.5 million, to the Kraken exchange. The move coincided with an Ethereum price rally above $3,500.

This is the fourth major ETH transfer by the Ethereum co-founder this year in 2024. So far he has offloaded 44,300 ETH, worth approximately $148 million, at an average price of $3,342 per token. On the other hand, Ethereum co-founder Vitalik Buterin has been selling meme coins off-lately.

Furthermore, Spot on Chain reported that another significant Ethereum sale has been reported as Winslow Strong, director of the Qualia Research Institute, transferred 9,380 ETH, worth $33.7 million, to Coinbase just two hours ago.

This move follows a broader trend of liquidation by Strong, who has sold a total of 14,233 ETH, worth $48.8 million, since ETH price began its recovery in early November.

As of press time, ETH price is trading 1.27% down at $3,570 with a 32% drop in daily trading volumes moving under $30 billion. As per the Coinglass data, the 24-hour liquidation has shot up to $32 million, with $19 million in long liquidation and $13 million in short liquidation.

✓ Share:

Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.