• Ethereum recovers from $3,300 support again as bulls rekindle buying power despite 12% dip
• Whales now hold more than 744,600 ETH in a vote of confidence by big cryptocurrency investors.
• A break above the $3,600 level may push Ethereum towards the next key resistance near $5,000.

Ethereum has recovered above a critical support level at around 3300, after a 12% pullback against the last seven days. The second-largest cryptocurrency in the world in terms of market capitalization has recovered a sharp decline and is currently traded at around $3,450. This action is a sign of fresh purchase pressure as traders get value at the bear levels.

Source: CoinMarketCap

The weekly chart indicates that Ethereum has been moving around in a key range, the resistance line of which is shaping up around its August highs of about $4,960. The asset is now floating around the important Fibonacci retracement level of 0.618 at the critical level at present of $3,200 an area many analysts consider critical in establishing the next significant direction in price movement.

Source: X

Ethereum Eyes Bullish Breakout as Whales Boost Accumulation

The reclaim of $3,600 would put ETH in a bullish zone, according to the technical experts. In case that level is retained, ETH may potentially retest the $5,000 resistance zone in the following weeks. Market players are also alive because price compression around these areas usually predetermines great volatility.

Also Read: Ethereum Eyes $4,400–$4,955: Could a Major Bullish Break Loom?

On-chain analysis shows that there is a steep accumulation pattern among the big players. According to reports by Ethereum treasury firm, Bitmine Immersion Technologies, ETH has added over 744,600 ETH to the treasury since the first week of October, which is equivalent to about $2.53 billion worth. This kind of accumulation is an indicator of developing confidence amongst the institutional players in case there is uncertainty in the markets in the short-term.

Ethereum Poised for Breakout Amid Market Uncertainty

According to the market analyst Mikybull Crypto, ETH has already managed to regain its moving average and is now measuring that area as support. He said that a proven retest can cause a break out and establishment of a potential run to the $6,000 level. 

Source: X

According to another analyst, Ted, there were other clusters forming the liquidity around the $3,300 and $3,700. He observed that traders were able to observe a rapid response in any direction whenever these areas were violated.

Source: X

The wide macro environment also continues to be one of the determinants of the near future path of Ethereum. The fixed market focus is on the current government shutdown debate in the United States that will have an effect on liquidity and the investor sentiment. 

Nevertheless, Ethereum has a long way to go, even though still experiencing a positive recovery prior to retaining a robust bullish discourse. The cluster of the price between $3,200-$3,400 indicates reluctance among the consumers and the sellers. Any decisive action crossing either line will probably lead to the tone of the rest of the year.

Altogether, Ethereum technical and on-chain indicators believe that the market is about to make a more significant directional shift. The buildup of whales, their support at a stable level of a regular level of $3,200, and liquidity levels are all good signs that a strong recovery is possible in case of a continuing momentum. 

Also Read: Ethereum Eyes $3,500 as $137 Million Whale Position Fuels Bullish Momentum