TLDR
- 25,000 ETH moved from exchanges between January 7-10, indicating whale accumulation during the market decline
- ETH lost 16% this week after Bitcoin’s drop from $100K to $92K
- The current ETH price is at $3,292.60 as of January 10, 2025 showing a daily change of -0.65%
- Technical analysis suggests a potential 44% rally to $5,825 based on inverted head and shoulders pattern
- Key support levels set at $3,278, $3,029 and $3,000
The cryptocurrency market witnessed a remarkable change in Ethereum holdings as wallets accumulated around 25,000 ETH during the recent market correction. Data from blockchain analytics company Santiment reveals a drop in exchange-owned ETH from 10.67 million to 10.42 million between January 7 and January 10, 2025.
The movement coincides with Ethereum’s price action, currently at $3,292.60, representing a modest decline of 0.65% over the past 24 hours. The second largest cryptocurrency by market capitalization has experienced a 16% drop this week, following Bitcoin’s drop from $100,000 to $92,000.
Market data indicates that large holders, commonly referred to as whales, transferred significant amounts of ETH from centralized exchanges to private wallets. This behavior usually suggests a long-term holding strategy rather than immediate trading intentions.
The timing of these transfers takes on further relevance when considering the wider market context. Recent volatility in the cryptocurrency market has created opportunities for strategic position building, which seems to be exactly what these major holders are doing.
Transaction data reveals a surge in high-value transfers in Thursday’s late trading session. Specifically, the number of transactions worth more than $100,000 and $1 million increased significantly, supporting the accumulation narrative.
Technical analysis of Ethereums price chart reveals the formation of an inverse head-and-shoulders pattern, a traditionally bullish technical setup. This pattern suggests a potential price target of $5,825, representing a 44% upside from current levels.
The market structure shows several important support levels that traders and investors watch closely. These include $3,278, which acts as immediate support, followed by $3,029 and the psychologically important $3,000 level.
For the bullish scenario to play out, Ethereum needs to overcome several resistance levels. The first major hurdle is at $3,600, followed by $3,843, and the crucial $4,000 mark, which could act as a trigger point for the planned rally.
Exchange flow statistics support the bullish case, as the decrease in ETH held on exchange usually reduces immediate selling pressure. The movement of 25,000 ETH from exchanges represents a value of approximately $82.3 million at current prices.
The number of election transactions, which track transfers valued at more than $100,000, showed a sharp increase during the recent price drop. This metric often serves as a reliable indicator of smart money movement and potential market bottoms.
Current market dynamics reflect previous accumulation phases, where large holders have historically taken advantage of price corrections to build positions. Recent election activity follows this established pattern.
Trading volumes across major exchanges have been stable despite price volatility, indicating continued market interest and liquidity. This stability in trading activity suggests that market participants remain engaged despite the recent price correction.
Looking at specific price levels, the market has established several strategic targets for potential profit taking in January 2025. These include $4,500, $5,000, $5,500, and the aforementioned $5,825 level.
However, traders should note that a break below the $3,029 support level would invalidate the bullish technical setup. Such a move could lead to further downside, potentially testing the $2,800 area.
The latest data shows continued whale accumulation, with the supply held by top addresses increasing by about 25,000 ETH, which corresponds to the decrease in the exchange-held supply.
