Ethereum Stalls at $3,063 – Will It Bounce Back or Is There a Trap Ahead?

Ethereum has experienced a significant rebound of 14% since hitting a low of $2,623 on November 21. However, this increase has been hampered by strong resistance at the $3,063 mark.

Key Takeaways

Ethereum has bounced 14% from its low of $2,623 but is facing resistance at $3,063.
Large whale holders have been accumulating ETH, while smaller holders have been selling.
Ethereum ETFs saw increased inflows last week but overall, outflows for November were not mitigated.
The weekly and daily charts show a mixed outlook, with the potential for recovery if the $3,063 resistance is cleared and retested as support.

Ethereum stalls at $3,063 - Will It Bounce Back or Is There a Trap Ahead?

Ethereum- Balance by Holder Value
Source: CryptoQuant

According to data on large holder balances, the cohort of investors holding between 10,000 to 100,000 ETH has been accumulating since June. This period coincided with a surge in interest around the concept of Ethereum as a digital asset treasury, particularly led by Bitmine Immersion [BMNR]. However, the chart indicates that those holding between 100 to 10,000 ETH have been selling off in recent months, showing a decrease in long-term confidence.

Additionally, AMBCrypto reported that Ethereum [ETH] exchange-traded funds (ETFs) experienced a rise in inflows over the past week; unfortunately, these inflows were not enough to compensate for the overall outflows seen in November. Traders and investors are left wondering whether a recovery is on the horizon or if the downtrend will resume at this psychologically significant $3,000 resistance.

Can Ethereum Continue Its Gains Next Week?

Ethereum 1-week Chart
Source: ETH/USDT on TradingView

Looking at the weekly chart, the upward trend has remained intact despite a substantial drop from $4,900 to $2,600. The swing points (marked in orange) indicate that a weekly close below $2,100 would signal a shift to a bearish outlook.

Ethereum 4-hour Chart
Source: ETH/USDT on TradingView

On the 4-hour chart, the structure appears bearish despite the recent rally. Attempts to surpass the $3,063 resistance led to a slight dip in price. The low trading volume and insufficient buying pressure as shown by the On-Balance Volume (OBV) suggest buyers may not be strong enough to drive a rally at this moment.

However, the rejection at this resistance was neither harsh nor rapid. This might hint at an early acceptance of the price level and a potential reduction in short-term selling pressure. If Ethereum can manage to break above $3,063 and then retest this level as support, it could create a buying opportunity, targeting the $3,400 supply zone. This target area, highlighted in red, is significant on the daily timeframe, where the trend has remained bearish since late September.

Final Thoughts

Disclaimer: The information presented here is solely the opinion of the writer and does not constitute financial, investment, trading, or other types of advice.