The 5% drop in Ethereum (CRYPTO: ETH) on Thursday has sparked speculation among traders about its ability to recover and close above the critical $3,700 mark by the end of the year.
What happened
Lookonchain data highlights an experienced whale, possibly associated with LonglingCapital, who purchased 6,000 ETH during a price pullback. Known for his impeccable timing, the whale has racked up $83 million in earnings.
Since May 8, 2023, the whale has acquired 75,400 ETH (worth $180.4 million at an average price of $2,392) and sold 50,800 ETH (worth $172.8 million at a average of $3,401).
| Cryptocurrency | Price | Market capitalization | 24 hour trend | 7 day trend |
| Ethereum (CRYPTO: ETH) | $3,612.85 | $435.1 billion | -6.7% | -8.9% |
| Bitcoin (CRYPTO: BTC) | $100,537.58 | 1.98 trillion dollars | -3.7% | -1.3% |
| XRP (CRYPTO:XRP) | $2.32 | $132.7 billion | -6.1% | -4.1% |
Trader analysis
Trader MaxBecauseBTC, in a recent post on X, outlined two scenarios for ETH holders for the next six months:
- Option A: Profit of 5-10 times net worth (55% probability)
- Option B: Loss of 40% of net worth (45% probability)
Max urges traders to embrace volatility, remain resilient, and focus on upside potential rather than fear of losses.
Cold Blooded Shiller highlighted the quarterly level of $3,700 as a key resistance point.
With 12 days until the end of the quarter, expect a fierce battle to close above that level.
Although ETH has traded above this level for six quarters, it has yet to close above it.
You can also read: Shiba Inu (SHIB): Significant rebound predicted despite recent falls
$ETH Quarterly level around $3700 is a big one.
Another 12 days left until the close here and I suspect it’ll be a battle to try and secure a close above.
We’ve traded above this level for 6 quarters and never managed to get a close above. pic.twitter.com/TMS3O4qgFy
— Cold Blooded Shiller (@ColdBloodShill) December 19, 2024
Trader Ted compared the $4,000 resistance to ETH’s struggle with $1,400 during the 2020-21 cycle.
It predicts a similar breakout, with a close above $4,100 potentially paving the way for a new all-time high.
Ethereum Statistics
IntoTheBlock data shows an 11.7% drop in large transaction volume and a 5.6% drop in daily active addresses. Net exchange flows have decreased by 132.2%.
Transactions over $100,000 expanded from 10,365 to 11,817 in a single day.
Currently, 81% of ETH holders are making profits, while 8% are breaking even.
He iShares Ethereum Trust BlackRock (NASDAQ:ETHA) led with a net inflow of $80.7 million on Wednesday, bringing total inflows to $3.4 billion.
Image: Shutterstock
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