A few days ago, Ethereum witnessed an inflow of 449,000 ETH into accumulation addresses in a historic day – wallets that have never spent. This is the highest daily inflow since 2018, indicating that these Ethereum whales are optimistic about Ethereum's future, although many are still underwater with an actual price of $1,981. This means that their purchase price is higher than the current market price. Despite short-term losses, these holders are not panicking and still believe in Ethereum's long-term potential.

ETH struggles at the $1,895 resistance

In terms of technical analysis, Ethereum is facing significant resistance at $1,895, where approximately 1.64 million ETH has been held by investors since November 2024. The price needs to close above $2,142 to break the current pattern of lower highs and lows, which would signal the potential for a bullish reversal.

Moreover, active Ethereum addresses have increased by 10%, indicating growing network participation. However, DeFi activity remains low, with DEX volume declining.

Recently, there has also been significant activity from whales. A long-term Ethereum holder recently transferred $27.6 million worth of ETH after more than 900 days of inactivity. This move caused the price of Ethereum to drop in the short term, but it did not last long before this cryptocurrency stabilized.

A sign of good news?

Although the price of Ethereum has dropped about 57% from its all-time high of $4,100, the recent accumulation by long-term holders and increased network activity may indicate a fundamental trust in its long-term value.

Subsequently, upcoming upgrades such as the Pectra upgrade may also play a role in boosting Ethereum. Scheduled for release on May 7 on the mainnet, this upgrade aims to enhance scalability, reduce transaction fees, and improve staking efficiency.

Short-term outlook: Resistance is key

However, the mentioned resistance levels and the slowdown in DeFi activity suggest that while the groundwork for a bullish trend seems to be forming, troubles may be brewing and certain challenges remain.

In the short term, ETH faces a technical resistance level that must be overcome to reverse the current downtrend. Traders are closely monitoring the resistance at $1,895, but failing to surpass it could prolong the consolidation phase or even lead to further declines. On the other hand, a confirmed close above $2,142 would be a strong signal for a bullish reversal.