The cryptocurrency market began the new week bearish, with Bitcoin dropping below $93k, while Ether held the $3,150 support level.
Ethereum recorded mixed sentiments in its on-chain activity over the past week.
During that period, whales accumulated amid a surge in network activity, while retailers reduced their exposure as escalating geopolitical tensions over Greenland affected prices.
Whales accumulate, retailers reduce risk
Ether, the second-largest cryptocurrency by market cap, is down 0.5% in the last 24 hours and has dropped below $3,180. The bearish performance comes after the cryptos slumped on Monday.
ETH’s performance also follows mixed sentiments in the market. On-chain data reveals that whales in the 10K-100K ETH bracket topped their collective holdings by a modest 190K ETH last week.
However, the buying has faded over the past few days following geopolitical tensions between the US and key European countries.
Meanwhile, retailers in the 1K-10K and 100-1K ETH range continue to reduce their exposure to the market.
They reduced their collective balance by more than 510K ETH over the past week.
The mixed sentiment among investors comes despite a steady surge in Ethereum’s network activity.
Last weekend, weekly active addresses on the network spiked from levels previously reported to a new all-time high above 706,000.
In addition to that, daily transactions surged to a new all-time high.
In addition to that, the network activity surge hasn’t negatively affected fees. Fees have continued to decline to new lows.
This was different from what was experienced in the past, when network activity growth often translated into high transaction costs.
The change stems from the various network upgrades over the years.
Ether could bounce back above $3,300 if the support level holds
The ETH/USD 4-hour chart remains bearish as Ether has lost nearly 4% of its value in the last two days.
The decline sparked $120.6 million in long liquidations since Monday, with bulls suffering huge losses.
The leading altcoin has held the $3,060 support level over the past few days, and this could serve as a springboard to enable it rally higher.
The bears could retest the $3,060 support line in the near term.
If the support level holds, Ether could bounce off the trendline and rally towards the 200-day EMA over the next few days.
An extended bullish run would allow ETH to hit 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 declined below their neutral levels. A firm move below will accelerate the bearish momentum, with the RSI currently reading 42.
If the bearish trend continues, ETH could retest the $3,060 support level over the next few hours. An extended bearish run could see ETH decline below $3k for the first time this year.
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