Ethereum (ETH) price is facing a strong resistance at $2,000

The $2,000 price tag appears to be a major psychological hurdle for Ethereum investors. With ETH heading precariously below $1,900 for the past week, cross-chain data reveals how traders’ recent decline in whale transactions and fixed exchange balances could exacerbate the stagnant price of Ethereum.

On-chain data reveals that Ethereum whales have been avoiding big bets in recent weeks. Likewise, the steady supply of coins on the exchanges indicates that investors may be looking to pounce on short-term profits.

Ethereum whales are waiting for the direction of the market

According to Santiment, ETH transactions of $100,000 and above have plummeted dramatically as to come. Chabela Network upgrade approaching. The chart below shows how the number of ETH Whale transactions has gradually decreased over the past month. Compared to the 14,655 transactions recorded on March 11, it was down 84% to 2,346 at the end of April 9.

Ethereum (ETH) price vs Whale transaction count. April 2023 Source: Emotion

Whale activity is often seen as a leading indicator of market sentiment. If they make fewer transactions, this may indicate lower confidence in the short-term price forecasts of the underlying currency. As such, sharks and other retail investors may become less interested.

Another important factor confirming the gloomy short-term outlook for Ethereum is the flat supply of ETH on exchanges.

As Ethereum saw a price surge towards the end of March, investors started moving the tokens off the exchanges. However, the chart below shows how Ethereum outflows have been flat since the beginning of April.

Between March 31st and April 10th, the supply of ETH on exchanges remained relatively unchanged at 12.49 million coins.

Ethereum (ETH) price vs Whale transaction count.  April 2023. Source: Santiment
Ethereum (ETH) price vs Whale transaction count. April 2023 Source: Emotion

The current trend shows that Ethereum investors holding coins on exchanges are likely to pounce on short-term trading opportunities rather than offline wallets, for future gains. This leaves huge volumes of supply to meet demand without causing significant upward pressure.

In short, the Whales deal is falling and a steady supply of coins on exchanges could pose a strong challenge to the Ethereum price rally.

ETH Price Prediction: The main resistance is on the way towards $2,500

According to IntoTheBlock’s Global In/Out of Money, bears could take control immediately if ETH cannot hold the $1,800 price support. However, 2 million addresses that bought 4 million ETH around that price will provide support.

If the support does not hold, ETH could drop further to $1,730, which is the minimum price 3 million addresses paid for 7.3 million coins.

Global in/out-of-the-money Ethereum ETH price breakdown.  April 2023. Source: IntoTheBlock
Global in/out-of-the-money Ethereum ETH price breakdown. April 2023 Source: IntoTheBlock

However, if the whales regain confidence, ETH could rise above $2,000. However, a group of 1.7 million holders who bought 1.84 million coins at prices close to $2,000 could look to sell once they break even.

If Ethereum price can measure the $2,000 resistance, it can ride the momentum and move forward towards the $2,500 region. But 8.5 million addresses containing 26.8 million coins could then start selling once ETH approaches $2,500.


In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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