Cryptocurrency markets started the new year on a bearish note, with Bitcoin falling below $93,000, while Ether held the support level at $3,150.
Ethereum recorded mixed emotions in on-chain activity over the past week.
During this period, whales accumulated due to a surge in network activity, but retailers reduced their exposure as rising geopolitical tensions over Greenland affected prices.
Whales accumulate, retailers reduce risk
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Ether, the second-largest cryptocurrency by market capitalization, fell 0.5% in the past 24 hours, falling below $3,180. The bearish performance comes after the cryptocurrency fell on Monday.
Ethereum‘s performance also follows mixed market sentiment. On-chain data reveals that whales live between 10,000 and 100,000 Ethereum Brackett exceeded overall holdings by a modest 190,000 Ethereum last week.
However, the buying has faded in recent days due to geopolitical tensions between the US and major European powers.
Whereas 1,000 to 10,000 and 100 to 1,000 retailers Ethereum The range continues to reduce its exposure to the market.
They reduced the overall balance by more than 51 million Ethereum Over the past week.
Despite the steady increase in Ethereum network activity, there are mixed feelings among investors.
Last weekend, the number of weekly active addresses on the network jumped from previously reported levels to an all-time high of more than 706,000.
In addition, the daily transaction amount hit a new all-time high.
In addition to that, the surge in network activity has not negatively impacted rates. Fees continue to fall to their lowest levels.
This differs from past experience, where increased network activity often led to higher transaction costs.
This change is due to various network upgrades over the years.
If the support level holds, Ether could bounce back above $3,300.
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of EthereumThe 4-hour chart of /USD remains bearish as Ether has lost nearly 4% of its value over the past two days.
The decline has led to $120.6 million in long-term liquidations since Monday, inflicting huge losses on the bulls.
The major altcoin has been holding the $3,060 support level for the past few days, and this could be a springboard for further upside.
The bears may retest the $3,060 support line in the near term.
If the support level holds, Ether could bounce off the trendline and move towards the 200-day EMA in the coming days.
If the bullish development continues, Ethereum It hits the $3,360 resistance level for the second time in a week.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators on the 4-hour chart have fallen below the neutral level. A solid move below this would accelerate bearish momentum, with the RSI currently at 42.
If the bearish trend continues, Ethereum A retest of the $3,060 support level is likely in the coming hours. If the bearish development becomes prolonged, Ethereum It fell below $30,000 for the first time this year.
