Ethereum (ETH) Price Consolidates Near $2,470 After 6% Drop

Ethereum (ETH) price is trading near $2,470 after a 6% drop over three days, raising questions about its next move.

The price of Ethereum (ETH) dropped by 6% over the last three days, decreasing from $2,600 to the $2,470 range. As the weekend drew to a close, the majority of large traders on Binance remained bullish on Ethereum, despite the 4% price drop.

While tracking the movements of the large holders and considering technical indicators, analysts at Benzinga have identified a short-term consolidation zone for the cryptocurrency.

Also, new data from CryptoBusy showed that over 1 million ETH was withdrawn from exchanges in the last 30 days, ultimately leading to a 5.5% drop in supply. At press time, exchange balances stand at 17 million ETH, the lowest level since 2021.

As Ethereum moved up from $1,800 to over $2,600, there was an increase of more than 44%. This pattern has most often led to bullish momentum, as cryptocurrencies rise in value after their supply is reduced. A drop in supply and an increase in demand often lead to higher prices in the market.

These large holders or whales, are choosing to move their ETH to cold storage instead of keeping it on exchanges. As a result, stock prices may stop dropping and often show traders’ confidence in the upward trend. Traders are closely monitoring the market to see if it will surge above the $2,500 point.

This means that Ethereum has been making new lows and new highs on the 3-day chart. After exceeding the 0.618 and 0.786 levels of the Fibonacci retracement, it sits just beneath the resistance at $2,500. However, following the TD Sequential indicator, there is a sell signal of “9” displayed on that same chart.

This pattern often suggests short-term profit-taking. Ethereum dipped to $2,457 after failing to hold above $2,500. Despite this, it remains above the 0.786 Fibonacci level at $2,403. If price stays above $2,400 and breaks past $2,500 again, analysts expect a push toward $2,738 and possibly $3,104.

Indicators like the Relative Strength Index (RSI) have cooled from overbought conditions, dropping from 70.85 to 66.78. The Moving Average Convergence Divergence (MACD) still shows bullish momentum, though the histogram is contracting.

Data from Coinglass shows that Binance’s top traders remain bullish on Ethereum, with a long/short ratio of 3.04 by account and 2.66 by position. This means over 75% of leading traders expect price growth.

Despite a 12.78% drop in ETH derivatives volume to $72.27 billion, open interest stayed steady at $30.84 billion. Options volume declined, yet options open interest rose slightly to $7.25 billion, suggesting ongoing long-term positioning.

Liquidation data reveals $93.14 million was cleared in the last 24 hours, including $81 million from long positions and only $12 million from shorts. This indicates that prices did not drop a lot owing to recent sell-offs. Over the last two weeks, ETH has slightly gone up by 35%.

Market volatility has often seen $1,986 and $2,196 as reliable support for the Fibonacci retracement levels. Ethereum price holding above these zones suggests the trend remains intact. As a new week begins, whale activity and derivatives data may help Ethereum retest and possibly reclaim the $2,600 level if momentum builds.

ETH has increased by 39.84% in just a few weeks and now sits at $2,508.70, showing one of its greatest monthly gains. Once the market recovers after being stuck in a prolonged slump, it often creates a bullish reversal pattern, showing that both prices and confidence may increase.

The value of ETH is currently holding steady above its VWAP at $2,485, a crucial area most investors are eyeing. When the bands of the Donchian Channel are getting closer, it suggests the market might become very active. If ETH trades above $2,500 and there is high trade volume, it may head up to $2,600 and $2,738. Still, if the price falls below $2,450, it could lead to another test of $2,235–$2,200.

The market is closely observing whether ETH will rise above $2,500. An uptick in the volume of trades may confirm that the price is rising. If buying demand decreases, Ethereum may remain in a limited