Recent market activity around Ethereum has generated much attention, especially following a high-profile whale investor’s big Ethereum purchase. For the third time this year, the whale made headlines as they purchased 22,919 ETH for an average of $3,368, which amounts to $77.2 million.
A whale bought 22,919 $ETH($77.2M) at an average price of $3,368 again 4 hours ago.
Since Aug 12, this whale has made 25 swing trades in $ETH and $WBTC, 21 of which were profitable, with a win rate of 84%, and a total profit of $4.57M.https://t.co/LGiKOWKUqz pic.twitter.com/smncJ2Qnhp
— Lookonchain (@lookonchain) December 31, 2024
Whale Activity and Strategic Moves
This investor has averaged 1.1 swing trades per day since August 12, with Ethereum (ETH) and Wrapped Bitcoin (WBTC) swing trades, where they racked in an 84% win rate. Of these trades, only 21 returned a profit, for which the whale made $4.57 million.
On the contrary, they have been buying dips and benefiting from price fluctuations in the short term, and their latest acquisition attests to their faith in Ethereum’s future ability to perform.
That pattern of opportunistic buying continuing during periods of price consolidation or a slight decline, as seen with this latest purchase, is also a common industry trend.
The whale’s investment in Ethereum trading in a constricted zone is between $3,306 and $3,375, expecting continued upward price pressure in the near term. But the enthusiasm won’t last unless the broader market conditions and technical resistance levels are favorable.
Ethereum Price Current Market State
In the last 24 hours, Ethereum has seen slight downward pressure to $3,386, down roughly 1%. This comes during wider consolidation after a big fall early in December. The total cryptocurrency market capitalization is $407.95 billion.
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The 24-hour trading volume of $25.39 billion reflects a more than 40% surge in trading activity. The increase in volume may also mean that traders are positioning for Ethereum’s next significant move, with volatility set to ramp up.
The recent dip does not indicate that Ethereum can digest this price. However, the fact that the utility token has now floated well above its critical support figure at $3,300 shows that it could be sufficiently resilient to withstand the selling pressure that has exposed its recent lows.
The cryptocurrency, however, remains capped to the upside by resistance at the $3,400 level. Overcoming this hurdle would be critical to a more significant rebound.
For technical reasons, Ethereum’s price movement shows a consolidation phase, hopefully leading to a break either way.
The 4-hour chart shows some limits of $3,300 – $3,400 and really strong resistance levels lasting at $4,052 and $4,097. If Ethereum can break above $3,400, supported by high volume, a fresh test may be performed on these higher resistance levels.
At this point, the Money Flow Index (MFI) of 51.11 is in neutral territory. This implies a neutral, or at least weighted, balance between buying and selling pressure for the market to become exposed to any catalysts from outside that would tip the balance. In addition to this, it indicates that Ethereum has not yet been in overbought or oversold territory.
