Ethereum is actively recovering from last week's drop to $3,850. On October 2, the altcoin rose more than 6% to $4,383. According to market data, ETH's daily trading volume has grown 45% and currently stands at $52.48 billion. However, large holders are beginning to take profits as the digital asset approaches a key resistance level.

According to crypto analyst Ali Martinez, $4,505 remains a key level that could determine Ethereum's short-term direction. He shared a price distribution chart from Glassnode, which shows a high concentration of addresses selling ETH in this range.

Lookonchain data confirms that some "whales" are reducing their holdings in anticipation of this resistance. For example, on October 1, Trend Research transferred 24,051 ETH worth $104.3 million to the Binance exchange.

Around the same time, another large wallet withdrew 20,830 ETH worth $98.3 million through Wintermute. And on October 2, a "whale" sent 4,000 ETH worth $17.3 million to Kraken.

The growing caution of large investors points to a potential short-term pullback before the next stage of growth. To confirm the bullish momentum, Ethereum must close above $4,500.

However, analysts remain optimistic and call ETH one of the best cryptocurrencies to buy right now. Market strategist Cas Abbe noted that the cryptocurrency has been forming a Wyckoff accumulation pattern since late 2024. According to him, it is currently in the final stage, which usually leads to parabolic growth.