Ethereum Price Dips Below Crucial Levels

As Bitcoin (BTC) price retraced below $93k earlier today, Ethereum (ETH) price retested the crucial support level above $3,300. The large-cap altcoin, with a fully diluted valuation of about $399 billion, slipped nearly 5 percent in the last 24 hours to trade about $3,315 on Tuesday, during the early New York session.

As a result of the heightened crypto volatility, more than $95 million was liquidated from Ether’s leveraged market, mostly involving long traders. Worth noting that Ethereum’s Open Interest (OI) recently surged above $20 billion for the first time since inception, signaling more volatility ahead.

Rising Web3 Activities Amid Mixed Reactions from Whale Investors

The Ethereum network has experienced a sharp uptick in on-chain activities in the recent past despite the notable competition from other chains led by Solana (SOL), and Tron (TRX). According to on-chain analysis from The Block Data, Ethereum’s USDT sippy has surpassed Tron’s for the first time this year after a 62% spike.

According to market data from Defillama, Ethereum has a stablecoins market cap of over $100 billion, mostly dominated by Tether USDT. On the other hand, the Tron network has a stablecoins market cap of about $58 billion, mostly USDT.

Meanwhile, Ether whales have shown mixed reactions in the recent past amid anticipation of a further bullish breakout. For instance, the US spot Ether ETFs have flipped positive in the past two days after registering notable cash outflows last week. On the other hand, Flow Traders deposited 6k Ether, worth over $20 M today, to OKX and Coinbase, and still hold nearly $50M in account balance.

Midterm Targets

According to a popular analyst Ali Martinez, Ether’s price is now aiming to print a new higher high after consolidating in the past few days. Furthermore, the ETH/BTC pair has been forming a macro reversal pattern, coupled with a bullish divergence on the daily Relative Strength Index (RSI).

The bullish trend will, however, be delayed if Ether’s price consistently closes below the support level around $3,257. In such a situation, Ether’s price could drop to the next major support level above $3,028 before rebounding towards $4k soon.