Key Insights:
- Ethereum price is testing resistance near the 50-day EMA and trendline.
- Ethereum gains momentum from forced buybacks.
- Whales accumulate ETH and remove it from exchanges.
Ethereum price is currently trading near a major resistance zone on the daily chart, combining a downtrend line and the 50-day exponential moving average (EMA). Market analyst Crypto_Twittier noted this technical confluence as a pivotal point. Ethereum’s price has hovered near $1,830, and a breakout above this level could confirm continued upward momentum.
The 50-day EMA has historically acted as a strong dynamic resistance during bearish cycles. Ethereum’s current test suggests buyers are gaining strength, but a failure to break through may prompt a retest of horizontal support around $1,550–$1,600.
Market participants are also watching for macroeconomic cues. Federal Reserve Chair Jerome Powell’s upcoming speech may impact market sentiment. Traders anticipate that dovish guidance could act as a catalyst for Ethereum and the broader altcoin market.
Ethereum Liquidation Spike Signals Market Reset
During the past 24 hours, liquidators forced 135,000 traders to close their positions, resulting in $314.78 million worth of losses. An $8.05 million Ethereum balance on Binance experienced the biggest single loss during the recent period of market volatility. These types of market events act as high-volatility phases that trigger the liquidation of overly leveraged positions, helping remove risky trades from the market.
Market resets frequently emerge from liquidation operations in the cryptocurrency space. The clearance of leveraged trades stabilizes funding rates alongside the effective reemergence of balanced buying pressure. Experts believe this system establishes a beneficial arrangement to increase organic prices.
Large-scale liquidations point to potential bottom formation at present. A period of wholesale selling allows new investors to purchase lower-priced assets, which could drive future price appreciation.
Whale Accumulation Reflects Growing Confidence
Recent growth in whale investment behavior indicates the positive future direction for Ethereum. A significant wallet transactioned 1,402 ETH valued at $2.56 million from Binance after spending two months inactive. The purchase movements from inactive investors demonstrate increased enthusiasm from seasoned Ethereum contributors who make investments when prices stabilize or decline.
Whales moving assets out of exchange custody decreases exchange-supplied tokens in circulation, which helps reduce market selling pressure. The ETH supply available on exchanges reached a nine-year minimum, according to Glassnode analysis.
The metrics indicate that market participants are establishing a foundation to support upcoming long-term price appreciation. Future sustained price growth will likely emerge from this ongoing accumulation pattern.
Pectra Upgrade Adds Technical Momentum
The Pectra upgrade, which Ethereum launched recently alongside fresh optimism, continues to drive technical momentum. Data capacity for layer-2 rollups using blob storage sees a 200% increase in capacity while the upgrade enhances both smart accounts and validator experiences.
The market analysis from ElJefe_Crypto shows this trend coming right after a three-day support bounce on the charts. The ETH price broke out of the $1,550 area before aiming for resistance in the $2,150–$2,700 range. The price of Ethereum may begin a mid-term bullish trend among strong trading volumes as it breaks past these resistance levels.
Stablecoin Supply Suggests Long-Term Undervaluation
The comparison of Ethereum’s price performance against stablecoin market capitalization on its network creates an additional bullish perspective of the market. A recent chart demonstrates that ETH maintains a close price point to its 2018 peak of $1,400 while the stablecoin market capitalization built on Ethereum’s network has expanded nearly 1,000,000 X to exceed $125 billion in 2025.
The stablecoin balance within the network serves as an indicator for user engagement while also enabling both capital investment and platform development, which would typically boost prices.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.