Ethereum [ETH] has shown remarkable strength over the past two weeks. As the largest altcoin by market capitalization and a key player in the blockchain industry, Ethereum’s performance has a significant impact on the broader cryptocurrency market.
Based on data from Coinglass, $410.17 million worth of ETH could be liquidated if the price reaches $2,616.57. This happens because prices tend to move towards areas of high liquidity, where large traders, or “whales,” can execute trades at more favorable prices.
These zones often create pressure on both buyers and sellers. With these factors, the possibility of Ethereum reaching $2,616.57 becomes more likely as it seeks liquidity in this area.
Could this path to massive liquidation push ETH to $3,000 after the feats of the past two weeks?
ETH Price Action Shows Strong Momentum
Analysis of Ethereum price action, especially in the ETH/USDT pair, reveals a recurring pattern on the daily time frame chart.
The Wave Trend Momentum Oscillator (WTMO) shows that when its lows are in sync, ETH often warrants price breakouts. This pattern has led to price surges exceeding 76.38% in the past.
Currently, the liquidity zone above $2,616 is a very important pivot point. The coin has been pushing the price up continuously for two weeks, although it encountered four days of decline, but quickly recovered.
The price is currently actively heading towards the $2,616 mark. If this level is broken, liquidation of the orders above could push the price higher, potentially closing above $3,000.
Whale activity creates momentum
Whale activity on the Ethereum network has also increased, further strengthening the case for ETH prices to rise.
Recently, a whale bought 2,117.7 ETH worth over $5.17 million after ETH price increased. This whale entered a long position through a rolling loan.
However, the whale had previously lost 6,078 ETH, or $14.7 million, when the market crashed on August 5. Over the past six months, the whale has lost $13 million on ETH longs, winning only one out of five attempts.
Although this whale's win rate is only 20%, if many other whales increase their holdings, this could help ETH surpass $2,616 and even higher in the near future.
Ethereum's Future Prospects
Finally, Vitalik Buterin outlined Ethereum's outlook for 2024 in a video that's going viral on X, formerly Twitter.
He emphasized the importance of scaling, usability, and Ethereum’s zero-knowledge (ZK) infrastructure, which will expand the scope of on-chain capabilities.
Vitalik envisions these technological advances will fuel the creation of applications that serve billions of users.
With its strong foundation and growing adoption, Ethereum is well-positioned to play a major role in shaping the future of blockchain technology.
