Ethereum is struggling to maintain support at $1,900 after recovering from the $1,750 level
An Ethereum early adopter sold 2,001 ETH for $3.82 million, securing an $8.66 million profit
ETH options worth $2.13 billion expired on March 28, creating market uncertainty
ETH’s leverage ratio reached a new all-time high, with nearly $100 million in long liquidations
Technical indicators show mixed signals with a bullish trend line at $1,860 but resistance at $1,920
Ethereum price has been on a rollercoaster ride in recent days, recovering from support levels but facing strong resistance as it approaches the $1,920 mark. The cryptocurrency market has been watching ETH closely as it battles to regain momentum after a period of selling pressure.
Ethereum started a recovery wave above the $1,820 and $1,850 levels recently. The second-largest cryptocurrency by market cap managed to stay above the $1,750 support zone before beginning its upward movement.
The bulls pushed ETH above the $1,880 resistance zone and the price moved above the 50% Fibonacci retracement level of the downward wave from the $2,032 swing high to the $1,767 low. However, sellers have become active near the $1,920 zone.
Currently, Ethereum is trading above $1,850 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $1,860 on the hourly chart of ETH/USD.
Key Resistance Levels
On the upside, Ethereum faces several key resistance levels that may determine its short-term price action. The immediate challenge is near the $1,900 level, followed by a stronger resistance at $1,920.
If ETH can clear these hurdles, the next major resistance would be near the $1,970 level. A successful break above $1,970 could potentially send the price toward the $2,020 resistance.
An even more optimistic scenario would see Ethereum breaking above $2,020, which might trigger more gains in the coming sessions. In such a case, Ether could rise toward the $2,050 resistance zone or even reach $2,120 in the near term.
However, if Ethereum fails to clear the $1,920 resistance, it could start another decline. Initial support on the downside is near the $1,860 level and the trend line, with the first major support sitting near the $1,845 zone.
Whale Activity and Market Impact
A major market event occurred when an Ethereum early adopter, referred to as an “Ethereum OG,” sold their last 2,001 ETH for $3.82 million. This sale netted the seller an $8.66 million profit, though they missed out on a potential peak value of $23 million.
The transaction took place at a price of $1,909 per ETH and has sparked discussions about shifting dynamics in the Ethereum market. The narrative suggests that new whales are poised to take over the market as early adopters exit their positions.
Following this large sale, Ethereum’s price experienced a slight dip of 0.5%, dropping to $1,899. This movement coincided with a surge in trading volume, with 1.2 million ETH traded in the hour following the sale.
The market’s reaction suggests that the sale may have triggered a short-term sell-off, as traders adjusted their positions in response to the news. On-chain metrics revealed that the number of active addresses on the Ethereum network increased by 5% in the hour following the sale.
Options Expiry and Leverage Concerns
ETH has been struggling to maintain the $1,900 price level after approximately $2.13 billion worth of Ethereum options expired on March 28th. Options in the crypto market typically expire on the last Friday of every month.
According to options data, 301,000 ETH coins were locked in options contracts set to expire, equivalent to $574.3 million at market value. ETH had a 0.39 call-put ratio, which is traditionally considered favorable for bulls. However, the market moved in the opposite direction, likely due to uncertainty surrounding the options expiry.
This bearish market reaction sent ETH price below $1,900. This is an important price level because it previously served as a support zone. However, selling pressure has forced ETH to remain under this mark for now.
Adding to the concerns, ETH’s estimated leverage ratio reached a new all-time high recently. As a result, the market was primed for liquidation events. ETH experienced $97.85 million worth of long liquidations in a 24-hour period, highlighting the risks of leveraged positions.
Recent reports also suggest that hackers may have taken advantage of the latest wave of sell pressure. Data revealed that two wallets received 14,064 ETH from Chainflip and Thorchain. These addresses then sold the ETH at a $1,956 price tag, receiving about $26.87 million worth of DAI.
The Ethereum market remains at a critical juncture, with technical indicators and market sentiment providing mixed signals. Traders and investors are closely watching key support and resistance levels as ETH attempts to regain its footing in a volatile market environment.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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