Ethereum Price Falters Near $2800: Whale Activity Raises Concerns
Ethereum Price Stalls Near Key Resistance
Ethereum (ETH) recently approached a significant resistance level near $2,800, sparking concerns about a potential price correction. This area coincides with a large concentration of investor cost basis levels, suggesting strong sell-side pressure as underwater holders look to break even.
At the time of writing, ETH is trading below this resistance. While the recent price surge was impressive, several indicators point to a potential slowdown.
Whale Activity and Exchange Inflows
- Whale netflows to exchanges surged 193.84% in seven days, according to IntoTheBlock, indicating a potential increase in profit-taking.
- Data from Glassnode shows a significant cost basis cluster at $2,800, implying substantial selling pressure if the price reaches that level.
This increased movement of ETH to exchanges contrasts with a 3.66% drop in Exchange Reserves to $48.18B—typically a bullish sign. However, a simultaneous 4.32% decrease in Open Interest to 16.61B suggests mixed sentiment and a lack of conviction among traders.
Overly Bullish Retail Sentiment
On Binance, 84.28% of open accounts hold long positions in ETH perpetual contracts, compared to only 15.72% short positions. This extreme bullish skew (Long/Short Ratio of 5.36) indicates a potential vulnerability. If the price fails to break through resistance, these leveraged longs could trigger a forced liquidation, exacerbating any downward pressure.
Technical Indicators Show Weakening Momentum
After being rejected near $2,747, ETH retraced. While still above its 9-day and 21-day EMAs, the Relative Strength Index (RSI) has fallen, signaling weakening bullish momentum. Support levels at $2,540 and $2,386 remain, but a failure to overcome the $2,800 resistance could lead to a swift retracement.
Conclusion: A Critical Juncture for Ethereum
Ethereum's price action around the $2,800 resistance is critical. The combination of whale activity, decreasing Open Interest, and heavily skewed retail sentiment suggests a potential for profit-taking and price correction. Whether ETH can overcome this resistance or experience a pullback remains to be seen. The coming days will be pivotal.
Codeum provides comprehensive blockchain security services, including smart contract audits, KYC verification, and custom smart contract development. We partner with launchpads and crypto agencies to ensure the security and success of blockchain projects.