Ethereum (ETH) is showing positive momentum, currently trading above $1,850 and the 100-hourly Simple Moving Average (SMA)

Despite this bullish recovery, an early Ethereum investor recently decided to cash in profits, selling 2,001 ETH for $3.82 million.

Ethereum (ETH) has shown positive momentum, trading above the 100-hourly Simple Moving Average (SMA) and showing strength above the $1,850 zone. However, the second-largest cryptocurrency is encountering resistance at the 61.8% Fibonacci retracement level of its recent downward correction, ranging from $1,900 to $1,920.

Earlier Ethereum investor pockets huge profit selling 2,001 ETH for $3.82 million.

As Ethereum continues its price recovery, one early investor has decided to cash in on the gains, selling a portion of their ETH holdings at a significant profit.

According to data from blockchain analytics firm Glass Node, an early Ethereum investor recently sold 2,001 ETH for $3,820,040, at an average price of $1,909.

This sale secured an impressive profit of $8.66 million in total. The investor originally acquired these ETH at an average price of $1,015 in 2021.

The sale also marks a 7.65% increase from yesterday, where ETH traded at lows of $1,767, setting the stage for a potential recovery.

This large transaction could have implications for Ethereum’s price action in the short term, as market participants will need to digest such a substantial sell order.

Key Levels to Watch

On the upside, immediate resistance for ETH is encountered at the 61.8% Fibonacci retracement level of its recent decline from the $2,032 swing high to the $1,767 low, currently situated between $1,900 and $1,920.

A breach and closure above this resistance zone could propel Ethereum towards the next round levels, reaching the 50% Fibonacci retracement level at $1,980 or the round-handle at $2,000.

Further gains could then target the 38.2% Fibonacci retracement level at $2,020 or the swing high at $2,032.

Alternatively, if selling pressure increases and pushes the price below the 100-hourly SMA, it could indicate a return of bearish momentum.

This move could open the door for a deeper pullback, with the next support zone lying between $1,750 and $1,767, where the 72-hourly and 100-hourly SMAs provide confluence.

Technical Indicators Still Suggest Bullish Structure Despite Resistance

Despite the setback at $1,920, Ethereum’s technical indicators suggest that the bullish structure remains intact in the short term.

The Relative Strength Index (RSI) on the 4-hourly chart is still above the 50-hour mark, indicating that the bulls have a slight edge over the sellers.

Additionally, the Bollinger Bands are still relatively narrow, which could suggest that a period of low volatility and consolidation is in progress.

This lack of decisive direction could leave traders waiting for clear signals before making significant entries or exits.

Potential Scenarios for Next 24 Hours

If ETH can break and close above the $1,920 resistance level, it could set the stage for a rally toward the $2,020-$2,050 zone. Such a move would be bullish and could set the stage for further gains in the coming week.

However, if selling pressure persists, and the price pulls back from the $1,920 zone, it could open the door for a correction toward the $1,850 zone.

A break below this support could negate the bullish structure and signal a deeper decline. In such a case, traders could prepare for the possibility of a move toward the $1,800 zone, which is a crucial level for bulls to defend.

Overall, Ethereum’s price recovery has shown strength, supported by positive technical indicators. However, the critical $1,920 resistance remains a key inflection point for the cryptocurrency’s short-term trajectory.

With an early investor locking in substantial profits, the market must now absorb this selling pressure before we can expect to see a decisive move in either direction. Traders and investors should monitor key levels closely as the next move by ETH could dictate broader market sentiment in the coming days.