Technical Indicators Signal Potential ETH Downturn

Ether's price trajectory shows concerning signals as it breaches a critical support level that held since mid-2022. The cryptocurrency failed to sustain momentum above the $2,545 resistance zone, now eyeing a potential 25% correction toward $1,600. Market analysts observe weakening bullish momentum through the Relative Strength Index (RSI), which remains constrained below a multi-year descending trendline.

Whale Activity Sparks Market Concerns

Blockchain data reveals significant movement from two Ethereum addresses (0x14e4 and 0x26Bb), collectively transferring 95,920 ETH (approximately $237 million) to exchanges including HTX, Bybit, and OKX. Notably, 【$154 million worth】 of these assets reached trading platforms within 20 days, while the remaining $83 million remains in wallet reserves. This activity coincides with five consecutive days of net ETH inflows to Binance, as tracked by CryptoQuant.

Diverging Market Sentiment Emerges

While technical analysis suggests bearish pressure, some analysts maintain optimistic outlooks. One market observer notes Ether's eventual breakout above weekly RSI resistance appears inevitable, potentially catalyzing price appreciation. ——This divergence highlights the cryptocurrency market's characteristic volatility——, where macroeconomic factors and investor behavior frequently override technical patterns.

Wallet Dynamics Reveal Shifting Holdings

Glassnode metrics indicate notable changes in ETH distribution patterns. Addresses holding 10,000-100,000 ETH have reduced their balances since May, while the 1,000-10,000 ETH cohort expanded correspondingly. This redistribution suggests either strategic portfolio rebalancing or gradual sell-offs by major holders, creating additional downward pressure on prices.

Long-Term Outlook Remains Contested

The current market uncertainty contrasts with bullish predictions of ETH reaching $4,000 or even $10,000, supported by sustained capital inflows into Ethereum-focused investment products. As the situation develops, traders monitor whether the $1,600 support level will hold or if further declines materialize in the coming weeks.