Ethereum Faces Crucial Resistance as WLFI Adds $10 Million in ETH

Ethereum (ETH) is currently in a period of price consolidation, which hints at a possible breakout. According to an analysis by the analytic firm CryptoBusy, on-chain data shows that World Liberty Financial (WLFI), backed by Donald Trump, has increased its ETH holdings.

The entity added 3,191 ETH, valued at approximately $10 million, increasing its total holdings to 62,789 ETH. This accumulation happened during a decline in ETH’s price, which suggests potential strategic positioning.

Additionally, Ethereum’s trading volume has dropped significantly, pointing to reduced market activity. While the price has struggled to gain upward momentum, technical indicators suggest a possible shift in market dynamics.

Ethereum’s Market Performance: Key Numbers

ETH is currently priced at $3,143.80, down 1.69% in the last 24 hours. Its market capitalization has also dropped by 1.70%, now at $378.87 billion. More importantly, its 24-hour trading volume has fallen sharply by 40.09% to $19.8 billion.

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This sharp decrease in volume suggests that market participants are in a wait-and-see mode, potentially anticipating a major move. If volume remains low, ETH may struggle to break through key resistance levels. However, an uptick in trading activity could trigger volatility in either direction.

Support and Resistance: Where Does ETH Stand?

Ethereum’s price action suggests crucial levels to watch. The immediate support sits at $3,100, where buyers have previously stepped in to prevent further declines. A breach of this level could lead to a test of $3,050, a historically strong support that has held during prior pullbacks.

If ETH fails to maintain this zone, bearish momentum may increase, pushing prices lower. On the other hand, the key resistance stands at $3,200, a level that ETH has failed to sustain in recent attempts. A successful breakout above $3,200 could drive the price toward $3,250. This is a significant barrier that must be surpassed for a potential trend reversal.

Technical Indicators: Reading the Market’s Pulse

ETH’s RSI currently stands at 42.77, below the neutral threshold of 50. This suggests weak momentum but does not yet indicate oversold conditions.

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A move above 50 could signal renewed buying interest, potentially shifting sentiment in favor of bulls. Meanwhile, the MACD indicator shows that the MACD line remains below the signal line in negative territory. This indicates lingering bearish momentum.