Ethereum has recently experienced an 8% drop, currently trading at $3,020. This decline has ignited discussions among analysts regarding its future prospects and potential strategies for investors.

Whale trader Adam has labeled Ethereum as a “cursed coin,” highlighting that despite a 110% rise in open interest since August, the cryptocurrency remains 20% below its all-time high. Analysts suggest two strategies for potential long positions:

• Purchasing after a liquidation event below $3,000
• Placing bids near the significant support level of $2,700

A chart analyst has identified critical resistance levels for Ethereum between $3,360 and $3,450, with key support ranging from $3,066 to $3,160. Additionally, it is noteworthy that three whale wallets control approximately 43% of Ethereum’s total supply. The CEO of IntoTheCryptoverse has indicated that Ethereum’s supply is likely to revert to pre-Merge levels soon, with a monthly increase of 45,000 ETH, currently just 32,000 ETH short of that figure.

Despite initial improvements in demand following rate cuts, inflationary supply growth over the last ten months has exerted downward pressure on prices. Recent data reveals significant whale activity, including the withdrawal of 10,000 ETH from Binance, while large transaction volumes have surged by over 70%.

📎 Related coverage from: benzinga.com