Compass Investments

If the price level between $3,600 and $3,800 holds, Ethereum could target areas above $4,000, reaching $4,800.

Over the past 24 hours, ether [ETH] has shown a drawdown of about 4% due to partial profit taking by some major players (whales). Nevertheless, the altcoin is holding on to an important milestone that could trigger a bullish rebound.

Such partial profit taking caused a decrease in quotes.

OnChain Lens data shows that one whale enriched himself by about $14.76 million by selling 3,000 ETH on Binance. Earlier, about two and a half months ago, he purchased 8,009 ETH for $18.25 million.

This market participant, dubbed the ETH millionaire, has kept about 2,002 tokens in his holdings, indicating his belief in the continued growth of value.

In addition, Binance has been transferring ETH and Bitcoin [BTC] from its hot wallet. On average, Wintermute received between $1.50 million and $1.80 million in ETH.

The largest batch of ETH transferred from Binance, worth $6.11 million, was sent to Bitget’s deposit point.

However, analysis of free liquidity and investor actions hints at a possible reversal of selling pressure.

On the charts, we can see that the bulk of ETH liquidity has shifted upwards after most longs (buy positions) were liquidated below $3,800.

However, the liquidity reserves in the $3,600 – $3,800 range have not been cleared yet, which is necessary to trigger a reversal.

The presence of liquidity just above the $3,600 level suggested an initial decline. This could have been done to get rid of hesitant traders, which is often practiced before price rises.

Thus, the ETH rate is capable of rising above $3,900, and the short-term ceiling is seen at $4,800.

On the other hand, the mobility of these liquidity clusters may lead to their further formation below $3,800. This will provoke the prolongation of the price in the range of $3,600 – $3,800.

Meanwhile, the MVRV for Ethereum is recorded at 1.5, indicating that holders are on the plus side as the value exceeds the realized base of $2,560. ETH is consolidating between $2,560 and $5,760.

The price halt in this corridor reflects the balance between fear and the desire to make money. It is a lull before the price storm, because during the altcoin season ether demonstrated exactly this behavior.