Ethereum (ETH), the second-largest cryptocurrency in the world, is facing some challenges after an 8.80% gain yesterday. Today, on January 17, 2025, ETH has dropped nearly 5% from its previous gains, falling from $3,450 to the $3,260 level.
Currently, ETH is trading at around $3,331 and has experienced a price decline of over 3.15% in the past 24 hours. However, trading activity has increased moderately, leading to a 5.5% increase in trading volume.
In the current market conditions, some large investors, known as whales, are accumulating ETH and taking advantage of the recent price drop. A newly created crypto wallet withdrew 2,884 ETH worth $9.57 million from Binance, the largest cryptocurrency exchange. This is the second accumulation by a new whale, as another wallet withdrew 1,799 ETH worth $5.92 million from Binance on January 16, 2024.
Long-term holders are also continuously accumulating ETH, as evidenced by the outflow of $51.15 million worth of ETH from exchanges. This movement of assets from exchanges to wallets indicates potential accumulation and creates buying pressure, which can drive further price increases.
The increasing accumulation by whales and long-term holders suggests growing confidence in the price potential of ETH.
According to expert technical analysis, ETH appears bullish and is currently retesting the support level. It has also formed a bullish falling wedge pattern on its daily timeframe. If ETH breaks this pattern and closes a daily candle above the $3,500 level, there is a strong possibility that it could rise by 15% to reach the $4,000 level in the future.
On the positive side, ETH’s Relative Strength Index (RSI) is below the overbought zone, indicating strong potential for an upside rally.
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