ETH whales’ bullishness might pay off as Ethereum price inches closer to $2,000

Ethereum price has been struggling to close above a key resistance level for nearly a year now and is attempting to do the same after failing a breach earlier last month. This critical psychological level is also tied to nearly 24% of the entire ETH circulating supply making a breach all the more crucial.

Ethereum price set to flip this level into support floor

Ethereum price, trading at $1,997 at the time of writing, stands inches away from breaching the $2,000 mark and potentially closing a daily candlestick above it to flip it into a support level.

Acting as resistance since May 2022, this barrier has only been breached once last month before ETH crashed 13%.

ETH/USD 1-day chart

The 6.4% rise observed over the last 24 hours is the effect of the optimistic whales that continued their streak of accumulation, albeit with some skepticism. Wallets holding 100,000 to 1 million ETH accrued over 1.4 million ETH throughout April, amounting to $2.8 billion as their supply rose from 20.1 million to 21.5 million ETH. Similarly, addresses with a balance of 1 million to 10 million ETH added another 400,000 ETH to their holdings to bring it to 11.61 million ETH.

Such bullishness is critical for recovery and might have been the driving factor for Ethereum price reaching closer to tagging $2,000. However, over the last week, some selling at the hands of the 100,000 to 1 million ETH holders has been observed. On the other hand, retail holders have only been selling since ETH crashed last month.

Cohorts holding 10,000 to 100,000 ETH have dumped over 800,000 ETH worth nearly $1.6 billion, followed by 1,000 to 10,000 ETH holders shedding 100,000 ETH in the span of a week to bring their total holdings to 15.29 million ETH. The skepticism of no recovery noted at the hands of small wallet holders has been countered by broader market cues and Ethereum whales’ perseverance.

Ethereum whales activity

Although, the journey to actual recovery is a far longer one and requires bullishness from every single ETH holder. As per the Global In/Out of the Money indicator, which compares the current price of the tokens to the price they were bought at, about 8.56 million addresses are still underwater. 

Holding 28.74 million ETH worth $57.4 billion, these addresses combined represent almost 24% of the entire Ethereum circulating supply.

Ethereum GIOM

Be that as it may, in order for these tokens to become profitable again, the altcoin would need to at least climb to the average price of $2,460. But for all the 28.74 million tokens to churn gains, Ethereum price needs to note a 43% rise to tag the upper limit of $2,865.

The last time the Ethereum price was at this level was back in May 2022, and a rally as huge as the one needed might not be coming for a while now.

ETH/USD 1-day chart

However, flipping $2,000 into a support floor would certainly trigger enough bullishness to get the investors moving, given it is a critical psychological support level.