Ethereum maintains crucial $3000 support as large institutional investors purchase $269M in 12 hours
Ethereum has been maintaining its position around $3,450, considered crucial for its bullish trajectory. The cryptocurrency faced price fluctuations recently, with a dip in mid-November that brought it close to $3,400 before stabilizing. Currently, Ethereum is hovering near $3,564 with slight daily losses as traders keep an eye on key support and resistance levels.
Analysts emphasize the importance of the $3,000 mark as a critical support zone for Ethereum’s current market structure. Holding above this level could pave the way for a potential upward movement targeting $4,300 in the near future. The recent price action indicates a consolidation phase rather than a bearish trend. Ethereum has been trading within a range of $3,348 to $3,700, testing these boundaries multiple times. This pullback is seen as healthy within the broader uptrend that started when Ethereum bounced back from $2,800 earlier in the year.
The $3,700 zone now acts as a resistance level after previously serving as support. Ethereum’s Bitfinex chart shows several bounces from this horizontal band since late October. A decisive breakthrough above $3,700, combined with strong volume, could signal a resurgence of bullish momentum in the market.
Institutional players have been increasing their holdings, with significant accumulation by large wallet owners despite recent price dips. One whale made a substantial purchase of 75,418 ETH worth around $269 million on Binance in just 12 hours, increasing their total holdings to 266,901 ETH valued at $949 million. Over $1.37 billion worth of Ethereum has been acquired by whale addresses in November alone, indicating that sophisticated investors see current price levels as attractive entry points.
Short-term technical analysis suggests a support range between $3,520 and $3,348, with traders noting concentrated leverage for long liquidation between $3,507 and $3,460. A drop into this zone could trigger significant price movements as leveraged positions get liquidated. Immediate resistance levels are seen at $3,631, $3,665, and $3,707. Breaking through these levels could improve the chances of a sustained rebound, especially if Bitcoin maintains its upward momentum.
Market technicians using Elliott Wave analysis believe that Ethereum may be in the final stages of a corrective wave pattern, potentially setting the stage for another bullish phase once the correction is complete. Overall, Ethereum continues to defend crucial price levels while showing resilience in the face of market volatility.
