Ethereum’s $3,400 Resistance Brings Bearish Pressure from STHs: Will ETH Price Rebound?
Bitcoin recently hit an all-time high of over $99,000, triggering a massive rally in the altcoin market. As a result, Ethereum, the second-largest cryptocurrency by market capitalization, climbed to its highest value in four months. Despite the increase in open interest, bearish pressure from short-term holders created solid resistance near the $3,400 mark, leading to heavy selling and price declines. Still, analysts expect a strong rebound in stocks as buyers take advantage of the dip.
Positive net flow enhances resistance levels
Over the past day, the Ethereum market has experienced massive liquidations from both buyers and sellers. According to Coinglass, Ethereum’s total liquidation is approaching $50 million, with buyers accounting for the majority at around $27 million.
In addition, IntoTheBlock data shows that the amount of Ethereum entering the exchange has increased significantly, with the Netflow indicator rising to 34K ETH, indicating that inflows exceed outflows. The massive influx of ETH into the market is creating massive selling pressure, leading to repeated price rejections at nearby resistance levels.
Additionally, an Ethereum whale that had been dormant for eight years suddenly reappeared and began selling its holdings. According to available data, whales used multiple addresses to offload $224 million worth of Ethereum.
The whale initially accumulated 398,889 ETH for approximately $2.4 million between January 18 and March 10, 2016, with an average purchase price of $6 per token. After eight years of inactivity, the whale became active again and began selling its holdings.
Also read: Dormant Billion Dollar Ethereum Whale Book Profits!
In addition, data from SosoValue shows that the Ethereum ETF has outflowed US$163 million this week, setting the third largest weekly net outflow. There has been a wave of outflows from the Ethereum ETF recently, with inflows reaching a record $515.17 million in one week, the highest level since its launch.
However, a rebound may be on the horizon as the long/short ratio increases, indicating increased buying volume at the current bottom.
What’s next for ETH price?
Ethereum bounced off the 20-day EMA at $3,233 but failed to break above the $3,400 level. This triggered a wave of selling pressure, leading to a break below immediate resistance. However, buyers are currently preparing for a strong rebound. At the time of writing, ETH price is trading at $3,278, having surged over 0.5% in the past 24 hours.
An uptrend with the 20-day EMA and the Relative Strength Index (RSI) in positive territory suggests the path of least resistance is to the upside. If buyers are able to sustain the price above $3,400, the ETH/USDT pair may climb to $3,900 and as high as $4,100.
Conversely, this bullish scenario may become invalid if the price declines and falls below $3,000. In this case, the pair could drop to $2,830, a key level for bulls to defend. A break below this support could shift the advantage to the bears.
