Ethereum Price Ready for Liftoff? Whales & On-Chain Metrics Insights

• Ethereum ICO participants returned after 9.4 years of dormancy and deposited 631.1 ETH to Coinbase as the market rebounded.
• ETH price hovers around the $3400 mark amid low trading volume.

Ethereum price has been in a sideways consolidation phase for nearly seven days. It was struggling to establish a decisive trend after breaking below the $3800 support zone.

However, the chart structure showed signs of bottoming out as a contracting triangle pattern observed in the 4-hour timeframe. That was coupled with a series of lower highs and lower lows.

The contracting triangle pattern suggested that ETH had found a local bottom at $3,300. If this triangle pattern is complete, the chart indicates the potential for an upward breakout.

A successful ascent could target previous resistance levels, converting them into new support zones.

The ETH price recently reversed from the $4000 mark. That led to a decline below its 20-day EMA support, reflecting a prevailing bearish sentiment.

At press time, the Ethereum price was trading at $3352, noting an intraday drop of over 1.86%. Its market cap has fallen to $403.40 Billion, and the total supply stood at 120.46 Million.

Suppose the current consolidation phase prevails, or a transition beyond the $3500 mark could be in the near term.

Ethereum ICO Participant’s Return Sparks Market Interest

In another Ethereum event, an ICO participant made a meaningful move as a deposit of 631.1 ETH. That is equivalent to $2.14M being made to Coinbase.

It also occurred at the right time because the market had recovered, as depicted in the graph above. Starting in July of 2015, in the first Genesis block, this participant was allocated 1,940 ETH, which was only $601 at the time.

With time, even though the market cycles happened, this early adopter stands to keep a large chunk of this initial purchase. The holder has 1,309 ETH worth approximately $4.4M at the time of this writing.

These frequently accompany the price rebounds mainly due to the large holders who seek to sell the coins at a favorable market. This reactivation after years of inactivity is consistent with previous patterns during market upswing.

If such a trend persists, it could mean that other inactive ETH addresses might also experience somehugee movements. These movements could indicate new directions in the market occasioned by the old players selling their long-term holdings.

What Does On-Chain Data Say?

Data from IntotheBlock showed that the Ethereum price has seen a 4.6% surge in new addresses over the past seven days. This data indicated an influx of new users joining the network, signaling potential market cap expansion.

Moreover, ETH’s Total Value Locked (TVL)remaineds the leading blockchain. At press time, the TVL stands at $67.415 Billion. Despite a significant decline over the past few days, there were signs of a potential recovery ahead.

Meanwhile, the funding rate remained positive at 0.0089%. This signified a sustained demand for the long contracts. The immediate support zones for the Ethereum price were $3300 and $3170. At the same time, the resistance zones were $3500 and $3680.

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.