Despite Ethereum's (Ethereum-ETH) poor price performance, significant movements are happening behind the scenes by crypto whales, who bought 1.10 million Ethereum coins in the last 48 hours, raising questions about a potential shift in market direction, especially since this purchase equals 0.92% of the circulating ETH supply of 120 million coins.
As whales continue to accumulate coins, Ethereum's price remains under pressure, currently standing at $2,195.
This discrepancy between whale movements and price performance has sparked considerable debate; are the whales betting on a rocket-like ascent in the distant future, or is this merely a clever tactic amidst market turmoil?
The accumulation of whales in cryptocurrencies has long been an indicator of violent price movements; in January 2025, whales acquired 330,000 ETH coins in just one week, leading to a temporary price recovery. Nevertheless, the market remains affected by a state of caution, struggling to break through significant resistance levels.
Ethereum Price Movement: Bulls Struggle to Gain Positive Momentum
Ethereum's price continues to trend downward even with whale buying pressure; it is below the 50-day exponential moving average of $2,234 and faces strong resistance at $2,228. A breakthrough of this level could change the momentum; however, until then, the risks of a decline remain very high.
Technical indicators support the bearish outlook:
Relative Strength Index (RSI): Stands at 37 and is approaching the oversold area.
MACD Indicator: A negative crossover indicates weak buying pressure.
Downward Trendline: Ethereum's price must break the $2,228 level to regain upward momentum.
If the price fails to hold above the $2,000 level, it may test levels of $1,989 or even $1,864. To break through the $2,393 level, it will need to negate the bearish trend scenario.
What affects the price of Ethereum? Trump's reserve for digital currencies and ETF projections.
Ethereum's price movement is accompanied by key developments in the crypto sector. On March 2, 2025, U.S. President Donald Trump announced the establishment of a strategic reserve for digital currencies in the United States, including Ethereum.
This initially sparked optimism, but the market's positive mood quickly faded after it was revealed that the reserve would only include seized digital assets and not new purchases. Additionally, the White House's digital currency summit on March 7, 2025, raised discussions and speculation about the potential approval of Ethereum (ETH ETFs).
Ethereum's blockchain currently controls the stablecoin market with a 56% share, enhancing its long-term investment value despite the prevailing short-term uncertainty.
In conclusion, Ethereum's price is still under the pressure of a downward trend, with the $2,228 level posing a significant obstacle; failure to break through this level is likely to lead to a price drop towards $1,989 and $1,864.
If the bulls manage to reclaim the $2,228 and $2,234 area, the price may target the $2,393 level in the near term.
