$ETH
The cryptocurrency market is heating up as Ethereum (ETH) shows signs of a strong recovery, bouncing back from a recent downturn. After hitting a low of $3,100.6, ETH has surged nearly 6% in the past 24 hours, currently trading at $3,484.9. Analysts are optimistic, predicting that ETH is on track to reach $4,000.
Whales Pump Over $28.5 Million into ETH
ETH’s recovery is supported by strong movements from major investors. According to Lookonchain, four cryptocurrency whales purchased 8,440 $ETH worth more than $28.43 million from Binance just as ETH began its slight recovery.
This move signals that large investors are seizing the opportunity to accumulate ETH, anticipating significant future growth. Notably, these purchases occurred when ETH reclaimed an important support level at the 200 EMA (Exponential Moving Average) around $3,100.
Technical Analysis: Momentum Towards $4,000
A technical analyst points out that ETH formed a bullish pin bar candlestick at the $3,400 support level, signaling potential upward momentum in the coming days.
Resistance to overcome: $3,500.
Price target: If ETH breaks through this resistance, it could see a 17% rise, heading toward the $4,000 mark.
Market sentiment is currently leaning toward the bulls, with investors confident in ETH's sustainable recovery.
Broader Market Context
The recent downturn affected not only Ethereum but also Bitcoin (BTC) and the entire market. Bitcoin dropped below $96,000, triggering over $1 billion in liquidations. Ethereum faced large sell-offs, leading to a 22.5% drop before the recovery.
However, with whale intervention and a positive market sentiment returning, $ETH is proving to have a stronger rebound than expected.
Conclusion: Will Ethereum Reach $4,000?
Signs from technical analysis and the large inflows from whales are creating positive momentum for ETH. However, the $4,000 target still depends on market sentiment and the next moves by major investors.
This could be an opportunity for investors to enter or increase their ETH holdings, but it's essential to consider the risks amid the highly volatile cryptocurrency market.