• Ethereum is down, testing crucialt $1,550-$1,600 support, critical for recovery.
• More than 1.2 million ETH were bought in the range of $1,450-$1,550.
• Whale purchases of 77,000 ETH worth $125 million indicate mixed market sentiment.

Ethereum has faced a slight downturn following rejection at the $1,688 resistance level. The 50-day Simple Moving Average (SMA) and a descending trendline from March 23 also present key resistance levels, further limiting potential upward movement. If Ethereum manages to hold these levels as support, a major recovery could follow.

On the downside, the support range between $1,450 and $1,550 holds significant importance. The last time ETH prices reached this level, bulls managed to outweigh the bears, with over 1.2 million ETH purchased in this range, according to Glassnode data.

Market analyst Solomon Geta emphasized Ethereum’s retest of major levels of support. According to him, the price can stabilize in the $1,550 to $1,600 range. As global markets improve, Ethereum can be preparing to see more price increases. The levels are under close watch by traders and investors for a breakout.

The price movement of ETH suggests that a breakout from the $1,670 barrier may trigger a rally to the $2,000 mark. The market is under scrutiny from investors and experts, as a breakout from the barrier may be an indicator of a bullish trend.

Lookonchain data indicates that long-term holders are now selling their positions, even after having ridden out the previous market cycle. This is happening in the $1,550 to $1,700 range, leaving analysts uncertain. Some may view this as a sign of a potential sell-off, while others believe the market could stabilize.

While a few large holders are selling their holdings, a few are aggressively increasing their buys. The recent event of interest has been when one investor sold 1,160 ETH for a loss of $2.6 million, having already bought the same at higher levels. On the other hand, an analyst from CryptoGoos added that another set of large holders had recently picked up 77,000 ETH worth $125 million.

IncomeSharks warned traders taking profits on rallies over buying dips. He had a personal regret of not taking profits during the last rallies, stressing that profit-taking in price rallies is more advisable than continuously accumulating. Various analysts project different views about Ethereum’s potential. 

CrypNuevo is of the opinion that ETH is ready to make a bullish surge, pointing to the steady support of the 1-week 50 EMA of Bitcoin. CrypNuevo made substantial spot buys in the price range of $1,700 to $1,550, hoping that ETH may move in a similar as Bitcoin. Meanwhile, analyst Belle is still bullish about Ethereum’s prospects, based on strong levels of support, increasing momentum, and positive weekly trends.

Related Reading: Ethereum Holding Above $1,600—Breakout or Breakdown Ahead?