The price of Ethereum (ETH) has risen 6% in the last week, trying to gain momentum for a rally towards the $4,000 level. The recent formation of a golden cross, combined with an RSI currently at 63.6, shows potential for further bounces.
Additionally, whale accumulation has resumed, with the number of wallets holding at least a thousand ETH recovering after a brief dip in early January.
As the asset hovers near key support and resistance levels, its ability to maintain bullish momentum will be critical in determining whether it can sustain its rally or face a correction.
ETH RSI drops below 70
Ethereum’s Relative Strength Index (RSI) is currently at 63.6, after briefly breaching the overbought threshold of 70 between January 3 and 4. The RSI measures the speed and magnitude of price movements on a scale of 0 to 100, offering insights into market momentum.
Readings above 70 indicate overbought conditions, suggesting a possible correction, while readings below 30 signal oversold conditions, which could point to a price recovery. ETH’s current RSI below 70 indicates that although buying pressure has eased, bullish momentum still remains in play.
ETH RSI. Source: TradingView
At 63.6, ETH’s RSI suggests a neutral to bullish outlook for the short term. A pullback from overbought levels could indicate that the asset is entering a consolidation phase or mild correction as traders take profits.
However, the RSI remains comfortably above 50, highlighting continued buying interest. If the RSI rises again towards 70, ETH could see renewed upward momentum, but a further drop below 50 could signal a weakening of the bullish momentum, potentially leading to a broader price pullback.
Whales are hoarding again
The number of Ethereum whales holding at least 1,000 ETH reached a monthly peak of 5,634 on December 25 before falling to 5,604 on January 2. Tracking whale activity is crucial because these large holders can significantly influence market trends.
An increase in whale accumulation usually signals growing confidence in the asset, potentially pushing prices higher, while a drop could indicate reduced interest or selling pressure.
Addresses with balance >= 1,000 ETH. Source: Glassnode
After reaching 5,604 on January 2, the number of whales has started to rise again and now stands at 5,615. This return in whale activity suggests renewed interest from large investors, which could support the price of ETH in the short term.
If the upward trend in whale accumulation continues, it could indicate growing market confidence and increased buying pressure, potentially driving further price gains. On the other hand, any decline in whale activity could signal hesitation among mainstream investors, which could weigh on the asset’s momentum.
Price prediction
Ethereum price recently formed a golden crossover on Jan. 4, a bullish signal that occurs when the short-term EMA crosses above the long-term EMA. While ETH price has yet to see significant gains following this formation, the technical setup suggests potential upward momentum.
If the uptrend strengthens, supported by the RSI levels and renewed whale activity, the cryptocurrency’s price could test the resistance at $3,827. A break above this level could pave the way for further gains, targeting $3,987 next.
ETH Price Analysis. Source: TradingView
However, support at $3,543 is critical for ETH to maintain its current uptrend. If this support fails, the asset could face increased selling pressure, potentially reversing its momentum.
In this scenario, Ethereum could test lower levels, with key support zones at $3,300, $3,200, and $3,096 coming into focus.
The article Ethereum (ETH) Could Rise as Whales Return – Analysis was first seen on BeInCrypto Brazil.
