• Ethereum sustains the critical $3,800 support level, signaling potential for an upward recovery phase.
• Massive $183.93 million ETH purchase by Bitmine renews market optimism among major traders.
• RSI and MACD indicators show weakening momentum, suggesting potential sideways consolidation in the near term.

Ethereum is attempting to test a key support level after a recent rejection at a major resistance level once again. Large ETH purchases by Bitmine indicate increasing interest and may assist the price in bouncing back. According to analysts, the next movement of Ethereum hinges on the probability of holding above this level or sliding lower.

At press time, ETH is trading at $3,848, showing a slight 0.55% decline over the last 24 hours. The ETH holds a market capitalization of $465.38 billion and has seen a 24-hour trading volume of $54.12 billion, reflecting continued high market activity despite short-term pressure.

Ethereum Whales Drive Market Optimism

According to popular crypto analyst Ted, data on the blockchain reveals that Bitmine today bought significantly in the value of $183.93 million in the token of Ethereum. In the view of the analyst, a couple of the same massive purchases could give the impetus ETH would require to rise higher in the short term.

Ethereum Price Struggles Near Key Resistance

However, Ted also noted that Ethereum once retested failed at its major resistance area, suggesting buyers failed to sustain dominance above the area. After the retest, ETH slid back towards the $3,800 region, which now represents an essential support level for the token.

If this area supports, the ETH could bounce back and make another push towards the higher side. Alternatively, the failure to support this level could cause the price to go lower, potentially towards the region of the $3,400-$3,600 zone.

Overall, the coming days are likely to be determinant of the short-term heading of Ethereum, as the market players keenly observe the prospect of the level of $3,800 holding as firm support, grounding the next run-up.

Also Read | Ethereum (ETH) Price Analysis: Bulls Target $4,250 After Key Support Rebound

Ethereum Faces Cooling Momentum

The weekly chart of ETH demonstrates a weak correction. Presently, the level of the RSI reads 53.04, falling from 64.56, suggesting that buying momentum weakens and ETH may go sideways anytime. On the other hand, the MA Ribbon provides strong support around $3,793 and $3,013, implying the ascending correction given selling momentum weakens.

The MACD indicator signals declining bullish momentum, given that the blue line crossed below the signal line at 386.42 versus 436.26, as well as the histogram falling negative at -49.83. This indicates frustrated momentum, suggesting bears may maintain dominance through the short term unless ETH recovers the $4,000 zone shortly.

Also Read | Ethereum (ETH) Eyes $8,000 as BitMine’s $1.5 Billion Investment Sparks Optimism