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Ethereum Surges 6% Amid Bullish Momentum, Whale Activity Declines

Coin WorldMonday, Apr 14, 2025 4:04 pm ET

1min read

Ethereum has recently experienced a surge in buying interest, with its price increasing by nearly 6% over the past week. This upward trend has been supported by several on-chain indicators that suggest growing bullish momentum as Ethereum approaches a descending resistance line. The market dominance of Ethereum is also on the rise, particularly as Bitcoin has rebounded above $85,000. However, there are signs of waning interest from large investors, which could impact the cryptocurrency's trajectory.

Despite the recent price recovery, investor confidence remains fragile. Data from Glassnode indicates that the number of wallets holding at least $1 million worth of ETH has decreased significantly this year, reaching its lowest level since January 2023. This decline suggests a reduction in interest from wealthier investors. Additionally, the volume of large Ethereum transactions has dropped considerably, with whale activity falling from a peak of $9.81 billion to $2.75 billion. This trend was further highlighted by a recent transaction where a whale moved 20,000 ETH, worth approximately $32.4 million, to the Kraken exchange, likely in preparation for selling.

Adding to the pressure, an on-chain analyst reported that an early investor from Ethereum’s 2015 ICO has been consistently selling. On April 13, this whale sold 632 ETH, worth around $1 million. Market sentiment remains mixed, and Ethereum’s open interest, the total value of outstanding derivatives contracts, has decreased by 1.16%, now sitting around $17.91 billion. This dip in open interest could slow down Ethereum’s recovery and increase the chances of a short-term pullback.

Ethereum has rebounded from the key $1,500 level, with sellers struggling to push the price any lower. Buyers are now focused on maintaining the price above a descending resistance line to bolster the current bullish momentum. At the moment, ETH is trading around $1,640, up more than 2% in the past 24 hours. The moving averages are pointing upward, and the RSI is in positive territory—both signs that buyers currently have the advantage. If they can keep the price above the descending resistance line, ETH might make a strong move toward the important $2,000 level in the coming hours.

However, if sellers regain control by pushing the price below the EMA20 trend line, Ether could drop toward $1,384—a key support level. A break below that could signal a short-term shift in momentum in favor of the bears. The outcome will depend on whether bulls can sustain their momentum or if the recent decline in whale interest and selling pressure from early investors will lead to a rejection at the resistance line.

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