Ethereum Price Stabilizes as Major Holders Increase Investments
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Ethereum’s Resilient Performance Above $3,000
Ethereum (ETH) has demonstrated remarkable resilience by maintaining a position above the $3,000 threshold following a significant market sell-off earlier this week. In a notable development, substantial investors have expanded their holdings amidst this downturn. The recent recovery marks the end of a volatile phase where ETH briefly dipped below critical technical benchmarks, inciting liquidations and heightened caution across the broader cryptocurrency landscape.
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As of January 22, Ethereum’s trading value hovered around $3,003, marking an approximate 1.3% increase over a 24-hour period. This upturn occurred after ETH experienced a nearly 13% drop between January 19 and 21, revisiting the $2,900 region for the first time in a month. The decline coincided with increasing macroeconomic uncertainties, ETF outflows, and the liquidation of more than $480 million in bullish leveraged positions.
On-Chain Data Reveals Strategic Accumulation
Recent on-chain data highlights that significant Ethereum holders have been strategically accumulating ETH during the recent market dip. Over a span of two days, whale balances surged by approximately 290,000 ETH, reflecting investments valued at around $360 million at prevailing prices. This pattern indicates that some long-term investors perceive the recent downturn as a strategic buying opportunity. However, other market indicators suggest a more cautious approach among seasoned traders.
Notably, the smart money index remains below its signal line—a level historically reached prior to substantial upward movements. In previous scenarios, such crossings heralded double-digit gains, but no such confirmation has emerged in the current context. Derivatives data further supports this cautious sentiment. ETH perpetual futures funding rates briefly turned negative, signaling reduced confidence among leveraged traders. Options markets have also shown a heightened demand for downside protection after repeated rejections near the $3,400 level over the past two months.
Technical Analysis: Navigating Ethereum’s Trading Range
From a technical standpoint, Ethereum is currently navigating within a symmetrical triangle on the daily chart. Momentum indicators reveal a bullish divergence, with the relative strength index forming higher lows while the price registered lower lows from November to mid-January. This pattern suggests a potential weakening of selling pressure, although confirmation remains elusive.
The immediate resistance to monitor lies at $3,050, a previous support zone lost during the recent sell-off. A sustained daily close above this level would indicate short-term stabilization. Beyond this, the $3,146–$3,164 range represents a significant supply zone, encompassing approximately 3.4 million ETH and anticipated to function as a formidable resistance barrier.
Conversely, failure to maintain the triangle’s lower boundary near $2,910 could pave the way for a more substantial decline toward the $2,610 support area.
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