Ethereum briefly touched the $4,100 level on March 12, but a surge in profit-taking by long-term holders has cast doubt on the sustainability of the rally. Despite a significant 73% increase in price over the past month, Ethereum’s upward momentum appears to have stalled around the $4,100 mark. The question now is whether the bulls can muster enough strength to push past the $4,500 milestone or if Ethereum will succumb to the pressure and drop below the $4,000 support level.
In the last 24 hours, long-term investors have traded 167,500 ETH, a notable increase in activity compared to previous periods. Unlike Bitcoin, which has entered uncharted territory with its price, Ethereum still faces significant resistance and accumulation clusters from historical levels. This resistance becomes evident when considering that Ethereum is still approximately 22% away from its all-time high of $4,878.
On March 11 alone, long-term investors moved 167,500 ETH that had remained dormant since 2021, representing a value of over $1 billion at the current ETH price of $4,020. Such movements of long-held assets often signal an impending wave of profit-taking among investors.
Given the influx of over $1 billion worth of ETH into the market within a short period, Ethereum’s bullish momentum could face challenges in the days ahead. There is a possibility of a downward trend toward the $3,900 level, especially considering the profit-taking spree observed among the 1.34 million addresses that collectively acquired 469,540 ETH at an average price of $4,100.
However, if market demand strengthens sufficiently to absorb the influx of ETH supply, Ethereum may find support around the $4,000 level and attempt another push towards reclaiming the $4,500 milestone.