ETH whales have been taking advantage of the decline in Bitcoin dominance to increase their balances, supporting the recent bullish momentum.

ETH bulls are performing strongly, driven by strong demand from whales.

Assessing ETH's next major price target. Can it surge to $2,900?

Ethereum [ETH] is finally showing signs of recovery after struggling to gain a foothold in the bull market. This generally reflects the improvement in market sentiment, but there is one specific factor that may have given ETH bulls a recent burst of energy.

For months, there has been a strong correlation between Bitcoin dominance and falling ETH prices. This has been the case for much of this year, with the BTC.D chart surging to a year-to-date high of 58.59%.

Just as BTC.D began to fall, ETH resumed its bullish momentum. This shows that liquidity is beginning to favor altcoins, and Ethereum is benefiting from it.

Bulls have been in the driver’s seat in the recent rally, which has seen a 16% gain in the past seven days. This comes after weeks of struggling to exit a local bottom range.

Our indicator evaluation shows that whales have been actively taking advantage of the latest rally. Whale balances have been growing since the beginning of September.

According to historical concentration data, as of September 1, there were 58.12 million ETH in the ETH whale address. As of the latest data on September 23, its balance has increased to 58.48 million.

As a result, the whale address balance increased by about 360,000 tokens in about three weeks. At current market value, this is equivalent to $949.68 million worth of ETH.

For more perspective, the inflows from large holders have grown over the past few days. For example, the inflows surged from 101,740 coins on September 14 to 675,000 coins on September 19.

The latest surge saw ETH whale inflows surge from just under 96,000 ETH on September 22 to over 515,000 ETH on September 23. In contrast, whale outflows hit their highest peak this month between September 18 and 19, when they rebounded from 150,340 coins to nearly 590,000 coins.

As of September 23, outflows were 241,000 tokens. Therefore, inflows to addresses (demand) are higher than selling pressure.

Can ETH maintain this newfound bullish momentum?

Ethereum’s current bullish trend, especially its rapid rise within a few days, can be seen as a sign of recovery. In this case, many traders may expect it to continue to rise. However, continued rise may not be realistic.

The short-term momentum may push the cryptocurrency closer to the $2,800, $2,900 price range. This range has previously acted as a support and resistance zone. Therefore, if the price pushes into the same range, it may create some resistance.