Well inventory complements technical support.
TLDR
25,000 ETH crossed the exchange between January 7-10, which whales during the market crash ETH is down 16% this week Following Bitcoin's drop from $100K to $92K, the current ETH price is $3,292.60 as of January 10, 2025; It showed -0.65%. Technical analysis suggests a possible 44% retracement of the daily $5,825 based on a reversal head and shoulders pattern with key support levels established at $3,278, $3,029 and $3,000.
During the recent market correction, whale addresses accumulated approximately 25,000 ETH, and the cryptocurrency market saw a significant change in Ethereum holdings. Data from blockchain analytics firm Sentiment Data showed that between January 7 and January 10, 2025, the currency-held ETH decreased from 10.67 million to 10.42 million.
The move is in line with Ethereum's price action, which is currently at $3,292.60, representing a modest decline of 0.65% over the past 24 hours. The second largest cryptocurrency by market capitalization experienced a 16 percent drop this week, following Bitcoin's drop from $100,000 to $92,000.
According to market data, large holders, commonly known as whales, have transferred large amounts of ETH from central exchanges to private wallets. This behavior usually suggests a long-term holding strategy rather than immediate business objectives.
The timing of these transfers takes on added significance considering the broader market conditions. The recent volatility of the cryptocurrency market has created opportunities for strategic position building, which is exactly what these big holders seem to be doing.
Trading data showed an increase in high-value transfers during Thursday's late trading session. In particular, the number of transactions valued between $100,000 and over $1 million increased significantly, supporting the stock narrative.
Technical analysis of the Ethereum price chart shows the formation of an inverse head and shoulders pattern, a typically bullish technical setup. This pattern suggests a possible price target of $5,825, which represents a 44% upside from current levels.
The market structure reveals several key support levels that traders and investors are watching closely. These include $3,278, as an immediate support, followed by $3,029 and the psychologically important $3,000 level.
For the bullish scenario to play out, Ethereum must overcome several levels of resistance. The first major hurdle is at $3,600, followed by $3,843 and the crucial $4,000 mark, which could act as a trigger for the planned rally.
Exchange flow metrics support the bullish case, as a drop in exchange-held ETH typically immediately reduces selling pressure. The 25,000 ETH discount exchange activity represents a value of approximately $82.3 million at current prices.
Whale trading counts, which track transactions valued at more than $100,000, have seen a sharp increase during the recent price drop. This metric is often used as a reliable indicator of smart money moves and potential market bottoms.
Current market dynamics reflect previous levels of accumulation, and large owners have historically been able to take advantage of price corrections to build positions. Recent whale activity follows this established pattern.
Despite price volatility, trading volume on major exchanges has remained stable, reflecting market demand and liquidity. This stability in trading activity suggests that market participants are engaged despite recent price adjustments.
Looking at certain price levels, the market has set several strategic targets for profit in January 2025. These include $4,500, $5,000, $5,500 and the previously mentioned $5,825 level.
However, traders should note that a break below the $3,029 support level will invalidate the breakout technical setup. Such a move could lead to further declines as it could test the $2,800 area.
The most recent data shows that the whaling continues, with the supply held by the top addresses increasing by approximately 25,000 ETH, corresponding to a decrease in the supply of the currency.
