🌎 Ethereum Reclaims $3,000 But Faces Major Resistance at $3,200

Ethereum price rose above $3,000 as bulls reclaimed the psychological level amid a broader crypto bounce on Wednesday. However, while ETH price reached highs above $3,126, on-chain data shows the cryptocurrency faces a significant hurdle at around the $3,200 level.

2 Million Addresses Traded ETH at $3,200

According to data shared by IntoTheBlock, the $3,200 level could be crucial in the short term as roughly 2 million addresses traded ETH at that price. These addresses are currently at a loss and may be looking to sell.

In May, the Ethereum price fluctuated between $2,800 and $3,350 before positive news helped buyers push higher. IntoTheBlock analysts predict a similar scenario, suggesting that bullish news could prevent a downward trend for ETH. The anticipated approval of the Ethereum ETF is expected to drive further gains.

Ethereum Reclaims $3,000 But Faces Resistance

Ethereum has reclaimed $3,000 but faces significant resistance around $3,200. Approximately 2 million addresses that traded ETH at this level are now at a loss, potentially ready to sell as they break even. Positive news, such as the Ethereum ETF, could act as a catalyst to maintain the upward trend.

Institutional Interest and Shrinking Exchange Supply

The imminent approval for Ethereum ETFs to start trading is set to boost institutional interest. Additionally, the supply of ETH on exchanges continues to shrink, which could further support the price.

Whale Withdraws $50 Million in ETH from Exchange

On Monday, a whale or institution withdrew 16,449 ETH worth over $50.3 million from the Binance exchange. This withdrawal occurred as the price of Ethereum recovered above $3,000, reflecting a trend seen with ETH whales in recent weeks. Notably, this was the whale’s first large accumulation of Ether, moving all their tokens to a new wallet to hold.

While there have been significant withdrawals by whales, there have also been notable deposits. An unknown wallet transferred 8,909 ETH worth over $27 million to Binance. Another address moved 11,069 ETH worth over $34 million from an unknown wallet to Coinbase earlier in the day.