Ethereum Overcomes September Slump but Faces Major Resistance Ahead

Ethereum has defied the 'September Curse' that sees many cryptocurrencies slump in value during this time of year. Since September 1, ETH's price has risen by more than 9%. However, despite this positive start to the month, Ethereum still faces a significant challenge as it approaches a major resistance zone.

According to Ali Martinez, whale activity on the Ethereum network has increased sharply, with transactions worth over $1 million jumping nearly 500% in the past week. The number of such transactions rose from 1,202 to 7,113, while large holders accumulated more than 320,000 ETH, a stash worth around $864 million at current prices.

The major resistance zone stands between $2,722 and $2,822, with over 13.3 million ETH previously traded in this range, making it a significant hurdle for Ethereum to overcome. Martinez notes that several failed breakout attempts could occur if the leading altcoin fails to break above this zone decisively.

On the supply side, Ethereum's available supply on crypto exchanges has dropped to a record low of 3.49%, while another 1.16% of the supply has left exchanges since June 1. This decline is linked partly to growing activity in staking and DeFi, with around 35% of ETH estimated to be staked, and roughly $53 billion locked in DeFi.