Ethereum price action points to an imminent rally fueled by market developments and bullish indicators lately. Per reports, Justin Sun, a top figure in the crypto sector, has bought $5M worth of ETH. Additionally, technical analysis, including a crucial support level reversal and favorable RSI divergence, suggests a potential 50% surge in Ethereum’s value.
Sun’s Recent ETH Purchases Signal Strong Confidence
Justin Sun, known for his involvement in the TRON ecosystem, has made substantial Ethereum purchases recently. According to Spot On Chain, Sun allegedly spent 5 million USDT to acquire 1,614 ETH at approximately $3,097 per token. This transaction occurred just 12 hours prior to the report.
12 hours ago, Justin Sun (@justinsuntron) allegedly spent 5M $USDT to buy 1,614 $ETH at ~$3,097.Since Feb 8, Justin Sun might have bought 362,751 $ETH (est. cost: $1.11B) at ~$3,047 via 3 wallets (more details in previous posts ).Note that he also deposited 45M $USDT to… https://t.co/xeW1usR3MJ pic.twitter.com/aJ4zhXFas2
— Spot On Chain (@spotonchain) July 11, 2024
Moreover, since February 8, Sun might have bought a total of 362,751 ETH, estimated at $1.11 billion, using three different wallets. The average purchase price for these transactions was around $3,047 per ETH.
Additionally, Sun deposited 45 million USDT to Binance recently, hinting at potential future Ethereum purchases.
Ethereum Technical Analysis Points to Bullish Momentum
Coinpedia’s chart analysis on TradingView reveals several bullish indicators for Ethereum. The crypto asset recently reversed from the crucial $2,850 support level, suggesting the potential start of a new bull cycle. This reversal coincides with a failed double top formation on the weekly chart, with a neckline at $2,844.
Significantly, the neckline aligns with the 50% Fibonacci retracement level, adding weight to its importance as a support zone. The weekly Relative Strength Index (RSI) currently sits below the halfway line. However, a reverse divergence in this indicator hints at a possible uptrend soon.
Market Sentiment and Liquidations
Recent market activity has shown a shift in sentiment favoring the bulls. Short-side liquidations totaling $52 million indicate weakening bearish control over ETH. This development, combined with the technical indicators, suggests growing momentum for an upward price movement.
The MACD indicator currently shows a negative crossover in its lines, fueling bearish histograms. However, this situation often precedes a potential reversal, further supporting the bullish case for Ethereum.
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ETH’s Current Market Position and Future Catalysts
Ethereum currently trades at $3,098.71, with a slight 0.18% increase in the last 24 hours. Its market capitalization hovers around $370 billion, solidifying its position as the second-largest crypto by market value.
Looking ahead, the anticipated Ethereum ETF listing could serve as a key catalyst for price appreciation. This development, combined with the current technical setup and market sentiment, supports the potential for a 50% rally in Ethereum’s price.
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