Ethereum's price mirrors the 2023 rally, with a potential surge to $10,000.
Whale accumulation increases confidence, holding 44.1% of Ethereum's total supply.
Shrinking exchange supply reduces selling pressure, supporting a stable upward trend.
Ethereum (ETH), the second-largest cryptocurrency by market cap, is showing signs of a potential surge. The price rebounded from the critical 61.8% Fibonacci retracement level, suggesting a healthy correction.
Now, with momentum building, the market hints at a rally similar to 2023. If the pattern holds, Ethereum could soon test the psychological $10,000 level, a figure that has long lingered in investors' minds.
Whale Activity and Shrinking Exchange Supply Fuel Confidence
Investor confidence in Ethereum's upward trajectory is growing. Data from Santiment reveals that large holders, or "whales," have been actively accumulating ETH since March 2024.
These whales now hold 44.1% of Ethereum's total supply, showcasing their belief in the cryptocurrency's future. Moreover, the supply of Ethereum on exchanges has dropped to a new low of 10.1 million coins.
This decrease reflects investors’ reluctance to sell, reducing the available supply. With fewer coins on exchanges, the risk of significant price corrections lessens, allowing for a more stable upward climb.
Key Support Levels Signal Crucial Battle Ahead
Despite Ethereum's recent gains, challenges remain. The price surged 26% from $2,150 to $2,723 before pulling back to $2,600.
Overhead resistance, represented by the 50-day Exponential Moving Average (EMA), could stall further growth. If the EMA holds strong, the price of ETH might retrace by 18%, dropping back to the critical $2,100 level.
This $2,100 support zone has proven to be a fortress for bulls, bolstered by an ascending trendline that has held since June 2022. In the past, rebounds from this line doubled Ethereum's value, most notably in November 2022 and October 2023.
As Ethereum's price movement continues to mirror 2023's rally, the potential for an explosive surge looms. With whales accumulating and supply dwindling, the stage is set for a showdown between buyers and sellers.
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