• Ethereum is testing a crucial support near $3,933, with investors closely watching for either a rebound or downturn.
• Two previously dormant wallets sold 200,000 ETH, generating historic profits of around $788 million for long-term holders.
• After bouncing near $3,800, Ethereum remains below the key $4,060 support, which could trigger a significant upswing if broken.

Ethereum is facing a critical moment as the latest large wallet activity marks its market direction. Analysts are closely monitoring major resistance and support levels for potential price direction. The next few days will determine if the token sees a comeback or downturn.

At press time, Ethereum (ETH) is trading at $3,940, with a 24-hour trading volume of $63.61 billion and a market cap of $474.79 billion. Over the last 24 hours, ETH has declined by 1.46%, prompting closer attention to its critical support levels.

Dormant Ethereum Wallets Sell $788 Million

A well-known crypto analyst, Ash Crypto, revealed that two previously dormant Ethereum wallets have transferred a total of 200,000 ETH worth approximately $788 million. The two wallets had purchased their tokens way back when ETH could only be sold at $50 per token, which represents one of the largest historic profits on the market.

Ethereum Faces Critical Support After Bounce

Meanwhile, another analyst, Ted, pointed out that the price of ETH recently reached the $3,800 liquidity zone that was expected as a probable reversal zone. After testing that zone, ETH bounced somewhat but is still below the $4,060 support zone, which most investors are actively paying attention to.

Analysts believe that breaking above the $4,060 zone of support will create a good catalyst for an upswing. Missing out on that will increase the odds of a negative shift lower towards $3,600, which will be a determining point for the market.

As Ethereum goes through this crucial period, investor focus shifts towards the way the coin behaves around these significant support and resistance areas. The next few sessions will determine its short-term direction as well as overall sentiment.

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Ethereum Faces Pullback After Strong Rally

The RSI is at 56.46, with neutral momentum, but a drop from the most recent high of 64.63 is indicative of easing demand. The MA Ribbon forms key supports at $3,462, $3,006, and $2,926, while the 200-day SMA lower at $2,445, remains a very strong zone for buyers.

Looking, the MACD still shows bullish strength with the line at 499.75 above the signal at 421.34. Downward-fading histogram bars and a decline recently also signaled fading upside momentum. Additional weakness may test ETH’s support before its next move.

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