Ethereum Smashes Resistance—Whale Profits Loom as ETH Nails Key Price Target

Ethereum’s bull run just hit overdrive—and traders are scrambling to front-run the profit-taking wave. The $4,000 breakout triggers flashbacks to 2021’s euphoria, but this time, institutional money’s parked on-chain. Smart money? Or another ’wen Lambo’ trap for retail bag-holders?

Gas fees spiking as DeFi degens FOMO back in. Vitalik’s roadmap upgrades better keep pace—scaling promises won’t cut it when apes want instant green candles. Meanwhile, Wall Street quietly stacks ETH futures while lecturing mom-and-pop investors about ’volatility risks.’ Classic.

Ethereum’s Rise and Investor Profit Threshold

In the first week of May, Ethereum$2,550 demonstrated a rapid climb from $1,812 to $2,584. This ascent was marked by three consecutive bullish candles, completing the classic “three WHITE soldiers” formation, underscoring the buyers’ dominance in the market. The “U” shaped rounded bottom formation in the chart is viewed as a sign of trend reversal.

According to IntoTheBlock data, around 6.61 million investors bought ethereum at an average price of $2,462. With prices surpassing $2,557, these positions will enter a profitable zone, potentially forming a robust support area with 67 million ETH benefiting. Consequently, investors are focusing on maintaining this critical barrier while monitoring potential surges.

Increased Volatility and Leveraged Trading Risks

Coinglass’s liquidation map indicates that a mere 3% increase in price might lead to the forced liquidation of $786 million in short positions. Such an event could rapidly instigate a new wave of buying, pushing Ethereum even higher.

Conversely, if ETH’s price drops 3% to $2,438, it could endanger $715 million in long positions with liquidity risks. This scenario warns of potential abrupt price falls, making caution paramount in leveraged trading. The RSI indicator, pointing toward overbought conditions, further strengthens the likelihood of short-term corrections.

Investors are closely monitoring $3,000 as a psychological resistance level and $4,570 as a potential target. The movement above the 200-day exponential moving average confirms the prevailing upward trend. However, with significant leveraged positions and rising volatility, effective risk management is crucial.