On Monday, July 14th, Crypto Market’s recovery momentum slowed slightly after a week of strong influx. Top-level cryptocurrencies such as Bitcoin and Ethereum show the attachment of sales pressures with long wick rejection candles on daily charts. Despite the potential pullback risk, high-net investors continue to accumulate ETH, indicating long-term convictions for this asset.
Ethereum whales accumulation counters short-term pullbacks
Since last week, Ethereum prices have bounced back from $2,464 to a recent peak of $3,082, accounting for a 22% profit. This recovery could be driven by investor optimism about the upcoming “Crypto Week” as the U.S. House plans to discuss a series of key crypto-related bills.
However, ETH prices have witnessed a surge in sales pressure at a $3,000 psychological resistance, proven by the rejection of the long wick of the daily candle. After a week-long gathering, increased sales pressure can be attributed to profit bookings from short-term holders, increasing the risk of bearish pullbacks.
Potential fixes can be related to retailers, but whale buyers continue to accumulate more ETH. According to the Blockchain Tracker, 0x3952 Ethereum whales, Lookonchain, has withdrawn another 6,000 ETH (worth around $18.26 million) from Binance Exchange.
Whale Activities | lookonchain
Records on the chain reveal that the whale previously withdrawn 50,255 ETH (valued by $113.85 million) from Binance three weeks ago, bringing its unrealized profit to more than $38 million.
Historically, whales accumulation during the decline in the market has renewed momentum for the market recovery and has been driven by a long-term upward trend.
ETH seeks pullback during the rise of wedge formations
A four-hour chart analysis of Ethereum prices shows that the current recovery resonates within two convergence trend lines, indicating the formation of a rise in wedge prices. This pattern is usually considered an inverted setup, accelerating the collapse of sales pressure below the support trend line.
Currently, Ethereum prices are trading at $3,014, standing below 0.5% above the bottom trend line. A potential breakdown will result in a short-term fix of 3.7%, allowing the price to reach the $2,880 neckline in the reverse head and shoulder pattern.
Holding this support is important for buyers to maintain a broader bullish trend.
ETH/USDT – 1D Chart
On the contrary, if the price is broken Immediate resistance is $3,024, extending integration within the wedge pattern.