Ethereum Bulls Face Key Resistance: Will Price Surge or Reverse?

Ethereum’s price has surged recently, breaking through crucial resistance levels and fueled by strong buying interest. Market dominance is growing, particularly with Bitcoin regaining its upward trajectory above $85,000. On-chain indicators point to a bullish momentum as Ethereum approaches a descending resistance line. However, a decline in whale activity could alter the forecast. Ethereum’s trading volume has declined despite recent price gains of nearly 6% over the past week, according to data from Coinglass. The large transaction volume metric has also dipped significantly, reflecting a reduction in activity from high-net-worth investors, as evidenced by a drop in Ethereum wallet holdings with significant balances, a trend observed since the beginning of 2023. Whale activity on Ethereum has declined considerably from a peak of $9.81 billion to just $2.75 billion, suggesting a decrease in interest among large players. On April 14, a prominent whale moved 20,000 ETH (worth around $32.4 million) to the Kraken exchange, potentially for selling purposes. A series of transactions by a notable Ethereum investor from its early days has also been observed. Adding to this dynamic is the decreasing open interest in the Ethereum market, which stands at about $17.91 billion – indicating a possible slowdown in the price’s recovery and increase the likelihood of a short-term pullback. Will bulls be able to break through resistance or will the trend reverse?