Ethereum (ETH) has reached a critical resistance level at $3,953 after an impressive rally over the past two months. This level could either confirm the continuation of the bullish trend or lead to a short-term consolidation.

As the largest altcoin, Ethereum boasts a fully diluted market capitalization of approximately $476 billion and an average daily trading volume of $30 billion. Recently, it successfully broke out of a multi-year descending logarithmic trend.

Possible Consolidation Before Further Growth

Ethereum might enter a phase of consolidation in the near term to attract more buyers. This scenario is especially likely as Bitcoin (BTC) has been stealing the spotlight with its surge above $105,000.

The anticipated altseason could take longer to materialize, as large-cap altcoins require additional time to attract new liquidity. The rotation of capital from Bitcoin to altcoins is progressing at a slower pace, which may delay significant growth for altcoins.

Whale Activity Fuels Demand

Data from Glassnode indicates that the number of large Ethereum addresses holding more than 10,000 ETH continues to grow exponentially. This rise coincides with a decline in the supply of ether on centralized exchanges (CEX). Over the past seven days, more than 95,000 ETH have been withdrawn from these exchanges, highlighting the increasing preference for holding ETH off-platform.

Additionally, U.S. spot Ether ETFs have seen a net inflow of over $2 billion in the last three weeks. BlackRock’s ETHA led the charge with a record weekly inflow of $854 million last week.

What’s Next?

The rising demand for ether among institutional investors aiming to diversify their crypto portfolios has significantly bolstered bullish sentiment.

  • Technical analysis suggests that ETH could target $5,250 in the near future, aligning with the Fibonacci extension on the daily chart.

  • A parabolic rally will be confirmed if the weekly Relative Strength Index (RSI) surpasses 70% once again, as it did earlier this year.

Ethereum remains on an upward trajectory, and if the current momentum persists, it could reach new milestones in the coming weeks.

#priceprediction , #ETH🔥🔥🔥🔥 , #CryptoNewss , #etherreum , #CryptoPredictions



Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“