Ethereum Sharks Pushes the Price Above $1400-While the Risk of a Bull Trap Increases
The crypto markets have been pleasant on the market participants as the majority of cryptos are heading towards their pivotal resistance, as soon as Bitcoin ignited a minor bull rally. Additionally, the global crypto market capitalization is also heading toward $900 billion, soaring by nearly 5% in the past 24 hours. Following the star crypto, the second largest crypto, Ethereum also sliced through its critical resistance at $1385 and jumped above $1400 in no time.
As Coinpedia reported earlier that Ethereum’s Knock-back is impeding, the current upswing may still be nullified, trapping the bulls close to $1500.
In a recent update, the number of Ethereum’s shark addresses holding 100 to 10,000 ETH tokens has swelled adding up to 3000 addresses in the past 10 weeks. As per the data from Santiment, the number of addresses has now reached 48,556 which is the highest level recorded since February 2021.
As seen clearly in the chart that the sharks tend to extract their profit after the price records significant gains. Previously, the no. of addresses continued to rise immediately after the markets crashed in May 2022.
The whales kept on adding ETH until the price regained levels close to $1800 after facing rejection from $2000. This was when the majority of the sharks just extracted their profits which is one of the reasons, the ETH prices dropped below $1300 in the next 2 months.
Now when the addresses count is raising since then, yet another possibility of a drastic drop haunts the Ethereum price rally. Presently, the ETH price is attempting very hard to hold above the gained levels at $1400 as the bear’s pressure has intensified. If the price is able to sustain above the crucial resistance-turned-to-support at $1385 until the day’s close, the bearish narrative may be invalidated for sometime ahead.