Ethereum price is down more than 4.3% over the last seven days, a sign that the barrier near $3,600 offers stiff resistance for the largest altcoin. However, market participants are viewing the latest correction as an opportunity to buy more on the dips.
Data from market intelligence firm Santiment reveals that Ether's dip to $2,800 saw a surge in buying interest among the whales. Sharing the data in a June 16 post on X, popular trader Ali Martinez observed that more than 700,000 ETH worth $2.45 billion were bought by whales in the past three weeks.
Solid demand at lower levels could be due to the expected launch of the spot Ether exchange-traded funds (ETFs), which Securities and Exchange Commission Chair Gary Gensler said could take place before the end of summer. According to Bloomberg senior E
A relief rally in Ether's price could pull the token higher.
Ether dropped sharply below the 50-day exponential moving average (EMA) at 3,643 on June 10, suggesting that the higher levels were attracting sellers.
The price attempted recovery on June 14, which was also rejected by the same 50-day EMA on June 17. The price is now fighting to hold above the 100-day EMA at $3,500. Buyers are required to aggressively defend this level to avoid sinking deeper.
If this happens, it would suggest the aggressiveness of the sellers in defending these levels, with the next line of defense arising from the 200-day EMA at $3,346. Losing this support will see the smart contract token drop lower to tag the major support level at $3,276, which would represent a 7% drop from the current levels.
ETH/USD daily chart. Source: TradingView
The 100-day EMA at $3,500 is the critical level to watch out for. If buyers keep the price above the 100-day EMA, it will suggest that the correction may have come to an end. The Ethereum price will then try to rise to $3,600 and later to $3,903, the triangle's upper limit.